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Level 1
posted Aug 31, 2022 3:42:00 PM

Selling used items owned for many years

Hi, I sell used items occasionally (once or twice every few months) on Ebay. I do not consider myself a business nor is this a hobby. I am trying to get rid of personally owned items because I am moving.  I have tried to research what the impact of this 1099k would be. Based on some online research i found from r

tax experts in states that already have had this requirement for 1099k,  the answer I gleaned was that I should not have to process this as a hobby or business because it is neither- to just do nothing with the 1099K. If I was making a profit off of selling an item, it would be capital gains, is how I understand it.   Again, I am selling personally owned property that I have had for years.  Is my understanding correct here? 

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1 Best answer
Employee Tax Expert
Aug 31, 2022 4:05:06 PM

Hello Ccl,   You are on target.  This is just a sale like a Garage/Yard Sale.  The income received is assumed to be much smaller than the original cost.  The items that you sold at a profit could be listed as personal property and record on Schedule D as capital gain.   Unfortunately, you will need to record the 1099-K.  You can reconcile the 1099-K from Ebay by recording an offset--negative entry.  Please see below.

To clarify where to enter the negative amount:

  1. Go back to Option 2, Step 5. Enter the applicable description and amount and Continue. (For example, the entries were Description Personal Property Sales and 100)
  2. TurboTax now shows Other Miscellaneous Income Summary. 
  3. Select +Add Another Income Item on the lower left side.
  4. At Other Taxable Income enter Cost of Personal Property for description and the negative amount and Continue. (To continue with the example, the amount would be -100.)
  5. Now returned to Other Miscellaneous Income Summary, select Done.

 

2 Replies
Level 15
Aug 31, 2022 4:04:55 PM

https://www.1040.com/blog/2019/7/12/selling-stuff-online-taxes-for-etsy-ebay-letgo-and-more/

Employee Tax Expert
Aug 31, 2022 4:05:06 PM

Hello Ccl,   You are on target.  This is just a sale like a Garage/Yard Sale.  The income received is assumed to be much smaller than the original cost.  The items that you sold at a profit could be listed as personal property and record on Schedule D as capital gain.   Unfortunately, you will need to record the 1099-K.  You can reconcile the 1099-K from Ebay by recording an offset--negative entry.  Please see below.

To clarify where to enter the negative amount:

  1. Go back to Option 2, Step 5. Enter the applicable description and amount and Continue. (For example, the entries were Description Personal Property Sales and 100)
  2. TurboTax now shows Other Miscellaneous Income Summary. 
  3. Select +Add Another Income Item on the lower left side.
  4. At Other Taxable Income enter Cost of Personal Property for description and the negative amount and Continue. (To continue with the example, the amount would be -100.)
  5. Now returned to Other Miscellaneous Income Summary, select Done.