Did you have a loss or gain on the items you sold on eBay?
If you sold these items at a loss, the easiest solution is to choose personal items when entering the 1099-K, and indicate that the items were sold at a loss or had no gain. Then, the costs are not needed.
If you made a profit from items on eBay, and they are not personal items you took a loss on, here is how to report this:
- First, separate the proceeds on losses from the gains. After you enter the 1099-K information, you will be asked if you "sold some items at a loss or had no gain" or if "all items were sold at a loss or had no gain." Unlike the prior situation, you will choose "I sold some items at a loss or had no gain." Then, enter how much of the total proceeds were for items that did NOT have a gain.
- Now, navigate to Federal > Wages & Income > Investments and Savings (1099-B, 1099-INT, 1099-DIV, 1099-K, Crypto) > Add/Edit
- Select eBay
- Under proceeds, you will enter the cost of the items with a profit
- You will enter the total amount paid, which is your cost of the items
- Continue on and you will be asked if you paid "sales expenses that aren't included in the sale proceeds reported on the form", here you will report a proportionate share of the eBay fees in relation to your total sales including the losses (if any)
