I live in Virginia and started selling some used personal property on eBay/Paypal (like a big garage sale, generally at a loss). How do I file a 1099K that Paypal sends?

Items have sold for less that $2K total, either at a significant loss or break even. Likely will be less that $4K for the year. Do I ignore the 1099K, or put it down twice (once as income and the value again as a cost/loss)?

716

Level 15

Oct 12, 2020 3:07:50 PM

See these TurboTax informational pages:

https://turbotax.intuit.com/tax-tips/self-employment-taxes/a-tax-filing-factsheet-for-ebay-sellers/

https://turbotax.intuit.com/tax-tips/small-business-taxes/what-online-business-owners-should-know-about-irs-form-1099-k/

https://ttlc.intuit.com/community/entering-importing/help/how-do-i-enter-a-1099-k-in-turbotax-online/00/26765

Level 15

Oct 12, 2020 3:13:02 PM

Q. Do I ignore the 1099K, or put it down twice (once as income and the value again as a cost/loss)?

A. Either way.

For the ignore answer, see: https://ttlc.intuit.com/community/taxes/discussion/received-1099-k-from-reverb-and-paypal-but-sold-only-personal-items-at-a-loss-this-link-suggests-no/00/1031403

For how to put it down twice, see: https://ttlc.intuit.com/community/taxes/discussion/do-i-need-to-report-a-1099k-from-paypal-even-if-it-is-under-the-20-000-per-year-and-i-was-only/00/395476

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I live in Virginia and started selling some used personal property on eBay/Paypal (like a big garage sale, generally at a loss). How do I file a 1099K that Paypal sends?