1099k paypal for personal items

[stantonporsche]

but you still need to put description of the item, purchase date and sale date.

where do you do that?

by doing this through miscellaneous income, does it get populated on form 8949?

on turbotax deluxe, it does let you enter 1099-K in Wages and income section :  1099-misc and other income

however, it seems to populate to the investment income section: stocks, mutual funds, bonds , other

will allow you to enter description, date sold, date acquired, sale proceeds ,cost or other basis

and will populate the 8949 form     .   on the form it does not let you make adjustment however, so I believe you need to do it manually 

[stantonporsche]

For example, I got 1099-K of 20,000 of sales, multiple items about 200.  I took a loss on all 200 items. 

Where on Turbotax Deluxe do you enter these details?  there is a box to enter amount for 1099-K but there is not area  to input the details such as description item, date purchased, date sold, cost basis

I believe turbotax premier and higher allows for this but nowhere is there a place in deluxe version. 

I was told that you can go to less common income section, miscellaneous income 

input description: 1099-K personal item sales, amount of : 20,000

then add another income item:  1099-K personal item sales, amount of :   -20,000

total miscellaneous income: 0    

hence no tax is generated.   however, i believe this might create an audit because there is no information on the items you sold.    

there is one area when researching this on internet:  information needs to be generated on form 8949

only way I can do this on deluxe is through the stocks, bonds section

last question: do I need to list out all 200 items I sold? 

[stantonporsche]

For example, I got 1099-K of 20,000 of sales, multiple items about 200.  I took a loss on all 200 items. 

Where on Turbotax Deluxe do you enter these details?  there is a box to enter amount for 1099-K but there is not area  to input the details such as description item, date purchased, date sold, cost basis

I believe turbotax premier and higher allows for this but nowhere is there a place in deluxe version. 

I was told that you can go to less common income section, miscellaneous income 

input description: 1099-K personal item sales, amount of : 20,000

then add another income item:  1099-K personal item sales, amount of :   -20,000

total miscellaneous income: 0    

hence no tax is generated.   however, i believe this might create an audit because there is no information on the items you sold.    

there is one area when researching this on internet:  information needs to be generated on form 8949

only way I can do this on deluxe is through the stocks, bonds section

last question: do I need to list out all 200 items I sold? 

[stantonporsche]

IRS would want the details of the items you sold however?

[stantonporsche]

Kathyrn,

in turbo tax deluxe using miscellaneous like you described

there is no information on description of item, what you sold it for and what you purchased it for.  

I believe you can do this on Premier and higher versions of turbotax .  generates on form 8949 

I was tinkering around with deluxe version and see that you can get a form 8949 generated if you list for example ebay in the stock, bonds section.   there questions they ask are sort of catered to selling stock.bonds and not some much to items but when transferring to 8949 , it seems to work out... put same amount however, so it zero out because otherwise generate a negative number and that is claiming loss on person items(not allowed)

[RobertB4444]

You are correct that entering the itemized list on form 8949 will give the IRS the information on the sale of personal items and that entering the cost the same as the sale price will zero out your taxable income.  This is recommended especially if your 1099-K represents a variety of different types of income.  If, however, your 1099-K is for a minimal amount and it is all for non-taxable reasons entering the total amount into the miscellaneous income section with a short description (sale of personal item, reimbursement by family, etc.) as both a positive and a negative should do the trick.

@stantonporsche  

[stantonporsche]

I agree. 

my daughter sold $50,000 worth of stuff at a loss 

if she enters this in Schedule 1, this will trigger an automatic audit 

schedule 8949 more details, less questions to be asked, less chance audit I believe.

I thought of doing both 8949 and schedule 1 but then why do that if IRS says either.  doing both probably raise eyebrows and say " hey, look at me!"

[DaveF1006]

Yes, you would report this is in the stocks and bonds section of your return.  For this, you will need to upgrade to Turbo Tax Premier.

Instead of entering each transaction separately, you may summarize your transactions. Please read this Turbo Tax article for more information on how to summarize your transactions.