I received a 1099-K from eBay for the sale of used, personal property. I claimed an offsetting loss on the 1099-K worksheet. Why does TurboTax flag this as an error?

The error arise when In try to submit my e-file forms. The error message is\ "Personal prop. loss sale: Loss from sale of personal property is not yet supported in this release of TurboTax." I have not claimed a net loss, so this error message is incorrect.

244

Expert Alumni

Feb 12, 2023 6:42:00 AM

Please be aware you cannot claim any loss on a personal sale item.

Please verify that you have entered the sale correctly:

Click "Wages & Income" (under Federal) on the left
Scroll down to "Other Common Income" and click "Show more"
Click "Start" next to "Form 1099-K"
On the "Choose which type of income your 1099-K is for" screen select "Personal Item"
On the "Your 1099-K Summary" screen, select Done.
On the "Wages & Income" screen
Scroll down to "Investments and Savings" and click "Show more"
Click "Start or Revisit" for "Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B)".
Click "Review" on "Personal item sales (1099-K)"
Enter the information on the "Now, enter one sale…" screen

Returning Member

Feb 12, 2023 11:38:09 AM

Thanks, I had already followed the directions you cited. I claimed that the cost of the items I sold on eBay was the same as the proceeds, which, I believe we both agree, is the correct way to report this income. That's what I did for my 2021 return, and I had no e-file problems.

I did not claim a loss, contrary to the error message I cited.

I eventually overcame the problem, later this morning, by deleting the 1099-K worksheet. That action allowed me to e-file and, to me, this further suggests that the error message I received, repeatedly when trying to e-file, is a bug.

Steve

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I received a 1099-K from eBay for the sale of used, personal property. I claimed an offsetting loss on the 1099-K worksheet. Why does TurboTax flag this as an error?