Form 1099K for Sales of Personal Items

[gregesq]

Form 1099-K - the selling platform provided a Form 1099-K.  The gross sales amount is reported on the form. Where do I enter the cost basis for each transaction, to establish that the actual income should be $0 because all items were sold at a loss? Where does Turbotax online prompt you to enter these transactions?

[JamesG1 · Accepted solution]

It sounds like you are reporting Personal item sales.  In TurboTax Online, to report Personal item sales of $0, follow these directions.  

• Down the left side of the screen, click on Tax Home.
• Click on the down arrow to the right of Review.
• Click on the blue band labeled Review.
• Down the left side of the screen, click Federal.
• Down the left side of the screen, click Wages & Income.
• Scroll down to Other Common Income click on the dropdown menu.
• Click Start/Revisit to the right of Form 1099-K.
• At the screen Did you get a 1099-K?, select Yes.
• At the screen How would you like to upload your 1099-K? click Type it in myself. 
• At the screen Which type of income is your 1099-K for, select the button for Personal item sales.  Click Continue.
• At the screen Let's get the info from your 1099-K, enter the information.     
• Click Continue.
• At the screen Personal Item Sales, select All items were sold at a loss or had no gain.  Click Continue.

The entire amount of the IRS form 1099-K will be reported on Schedule 1 Form 1040 as included in error or for personal items sold at a loss.

[1Cts1]

  Which TurboTax product do we use to accomplish this to be listed on the schedule 1 1040? Deluxe or Premiere?

[JamesG1]

The directions for Personal item sales outlined above can be reported in both TurboTax Online Deluxe and TurboTax Online Premier.

@1Cts1 

[bakoenigsberg]

Deluxe will not allow you access to form 8949 and Schedule D where you need to put in your gain and basis.  I was told  by TT help that due to current marketing strategy  forms are no longer available unless you upgrade to Premier.  I was also told that this still was not straight forward and a work around needed to be done by clicking other.  This appears to be a money grab by TT to get people to upgrade.

[jbpatterson]

This is not working for me. I entered all of the 1099-k info, marked it as personal goods at a loss and I’m getting a flag when I run error check. I was in with support for 2 hours with no resolution. What do I need to do?

[DianeW777]

Yes. Enter two separate 1099-Ks as though you received two, one for your personal items sold at a loss and one for the personal items sold at a gain (if applicable)  Keep in mind you can separate it into two categories.  

One category would be all items sold at a loss and the other category would be all items sold at a gain.

Personal Items Sold at a Loss.

The costs associated with the sale of personal items can be used to offset the income from those items.  If these times were sold at a loss, you can simply track this information and keep it with your tax return (you need this in any event) without reporting it.  Otherwise you report the income and cost at the same amount because a loss is not allowed for this transaction.

Personal Items Sold at a Gain.

One personal item or a group of personal items sold in one transaction or many that results in a gain requires the gain to be taxed. 

It's not necessary to enter each individual sale as long as you have the detail to show how you arrived at your return data.

A second action could be the following if the 1099-K(s) are deleted first: 

To enter your sale in TurboTax, follow these steps. 

1. Open or continue your return.
2. Navigate to the investment sales section:
   • TurboTax Online/Mobile: Go to investment sales. If using this application, make sure it is open
   • TurboTax Desktop: Search for investment sales and then select the Jump to link. 
     • Or Personal Tab > Continue > I'll choose what I work on > Scroll to Investment Income > Select Stocks, Cryptocurrency, Mutual Funds, Bonds, Other
3. Answer Yes to the question Did you sell any of these investments in 2024? 
   • If you land on  the Investment sales summary or Your investments and savings screen, select Add More Sales or Add investments.
   • Click this link for more information. Where do I enter Investment Sales?
   • Select Personal Items (assumes personal use before sale)- Sales Proceeds and Cost should equal for any losses
   • Repeat for any gains

@jbpatterson 

1099-K Entry Image first - Investment Sale second:

[SS gold]

We are using Turbotax deluxe and have a 1099k which shows the gross amount of concert ticket sales. Where do we enter our cost basis, so we are taxed on the net gain? when we follow the instructions, we get an error - maybe because the 'not reported to IRS' box is checked. Although we did not check that box.

Thank you

[MonikaK1]

Go to the Investment section to report your cost basis. When you go to that section, look for an entry for your sales reported on Form 1099-K. Open that item, and there you can enter the cost basis. See the screenshots provided by @DianeW777 earlier in this thread.