Ebay 1099 K doesn't account for cost basis. Where do I enter that on turbotax?

[mark24sports3]

Hello,

So I received a 1099-K from Ebay in reference to my sale proceeds for the tax year. However, this just has my total gross sales and does not calculate my cost basis. For example: I buy a Nike coat for $50 in 2021 but then sell it in 2024 for $70. My net proceeds would be $20, however, the 1099-K shows the proceeds as $70 (because they don't know what I bought it for). Where would I enter this in when completing on turbo tax.

Additionally, let's say I have other sales where there was a lost (eg: one example is buying nike shoes for $100 in 2015 and selling them for $50 in 2024). Let's say I have a total of $500 proceeds for 2024. Can I deduct the $50 loss to take my gross total to $450. I know you cant report it as loses if it goes below zero, but I just want to see if I can count the loses (as described above with the Nike shoes example) to lower my total gross.

Please, any guidance would help!

Thank you!

[SabrinaD2]

Here's how you can report your sales and account for the cost basis depending on whether they are personal sales or self-employment sales:

Assumptions:

• If you are selling items as a hobby, report them as personal sales.
• If you are running a business, report them as self-employment sales.

Personal Sales: Here's how to do it, using TurboTax Online Premium:

1. Open your return in TurboTax.
2. Search in magnifying glass at top right  for "1099-K" and select the "Jump to" link.
3. Follow the onscreen instructions to enter your 1099-K.

Important Point:

Each gain or loss from a personal item sale needs to be reported separately. If you lost money on a personal item, it can't cancel out any money you made on another personal item.

Self-Employment Sales: Here's how to do it, using TurboTax Online Premium:

1. Open or continue your return.
2. Go to Schedule C.
3. Answer the questions about your business and its expenses until you get to the Here’s your info screen.
   • If you’re returning to Schedule C, select Review or Edit next to your work and then answer the questions about your business.
4. Select Add income for this work.
5. On the Let's enter the income for your work screen, select Form 1099-K and Continue.
6. Enter your 1099-K info.
7. Enter your expenses, including the cost basis of items sold. For example, for the Nike coat, enter $70 as income and $50 as an expense.
8. For losses, enter the sale of the Nike shoes as $50 income and $100 expense.

TurboTax will calculate your net profit or loss from your self-employment activities

Clarifications Needed:

• If you have multiple sales, ensure each sale is entered individually with its respective cost basis and proceeds.

Supporting Links:

• How do I enter a 1099-K for personal item sales?
• How do I enter a 1099-K for self-employment income