1099-K - Where To Enter Net Proceeds - Personal Items Sold At Loss - Using TurboTax Premier

[bdscates]

Hi. I received a 1099-K for 2025 income tax. I am selling items from my deceased parents and personal items. All are at a loss. I made approximately $8,900 and sold 203 items. I live in New Jersey. I have entered the 1099-K on TurboTax Premier but am a little confused. Can I put my net proceeds on the 2025 income tax form when it is a hobby and how do I list it. I have read to put it on Schedule C. Do I list the "real amount" paid (which is minus fees and shipping) on Other Income and if so, do I put a "-$5,659.34" or just enter "$5, 659.34".  Any help will be appreciated.

[KrisD15 · Accepted solution]

It is easier than that. 

Since you sold personal items, and those items were inherited by you, there would be no gain and no loss on the sales. 

Enter Form 1099-K under

Other Common Income

Income from Form 1099-K

On the "Which type of income is your 1099-K for? screen select "Personal item sales"

Continue 

Enter the Form 1099-K

Select "All items were sold at a loss or had no gain" on the "Personal Item Sales" screen

Continue and select DONE

If you are in the business of buying and selling items, you could consider that as a business and file Schedule C, but from your description, this would not be considered a business. 

If you claimed it is a hobby, you would still not be allowed to claim any losses. 

HERE is a link with more information 

[bdscates]

Thank you for replying. Yes, it should be easier. I sure didn't make $8,900, ha ha. I am finally getting rid of items and since I don't want to put them in the Salvation Army box I thought someone would like to add them to a collection. In fact, the way the IRS site reads is that I had to make $20,000 and sell more than 200 items to receive a 1009-K. I sold 203 items but it could be the reason I received it is that it is my state's threshold - New Jersey. I am going to give it a try.