I received a 1099K for personal property sold through PayPal. When I itemize the cost of personal property items, it calculates a loss in turbotax.

[calambert1970]

How would I handle the following situation:

Receiving a 1099-K form that is a combination of some items sold with intent to profit or simply had increase in value as a collectible, but also includes personal items around the house sold to recoup some money from (at a loss) as well as sale of items (none that would require an appraisal) that were received as an inheritance (which I assume would have a cost basis close to what it sells for and thereby not really contributing to Self-Employment income)?

[EuroThrasher]

"Yard sale" personal property of one purchased prior with funds already subjected to state and federal taxes on a on1040a, and that which was subjected to tax upon purchase, and sold agian, hardly classifies as something which should be taxed THREES TIME while still in the possession of same PERSON.....YES, I find that excessive!

[ToddL99]

Break down the 1099-K amount into two parts - one for the items sold for profit and the other as incidental personal sales - then, report them separately.

Items sold for profit are reported as "General Income" or "Other self-employed income" in the Business Income and Expenses section of TurboTax Self-Employed (or desktop Home & Business). See the screenshot below for aid in navigating. You can enter the cost of these items as an expense in the "Other miscellaneous expenses"  interview under Common Expenses.

"Yard sale" items are reported as "Other Reportable income" . You can also make a "negative" entry to show the cost of these items (equal to the proceeds).

To report the income:  

 
If the 1099-MISC reports investment income that is not related to your main job or self-employment, enter the information as follows in the 1099-MISC interview:  

• Click on "jump to other reportable income  (or "other reportable income" in the Search Topic results)
• Type "other reportable income" in the search window (or in the Search Topic window for desktop versions) 
• Answer "No" to "Did you receive any other wages?" 
• Select "Other reportable income" from the Miscellaneous income list 
• Select Add another Income item  on the Other Miscellaneous Income Summary screen 
• Enter a Description and an amount,  then click on Continue 

The amount will be reported on line 8 of Schedule 1 (Form 1040). 

To enter the adjustment:   

• Click on "jump to other reportable income  (or "other reportable income" in the Search Topic results) 

• Type "other reportable income" in the search window (or in the Search Topic window for desktop versions) 

• Answer "No" to "Did you receive any other wages?" 

• Select "Other reportable income" from the Miscellaneous income list 

• Select Add another Income item  on the Other Miscellaneous Income Summary screen 

• Enter a Description and an amount (negative),  then click on Continue 

A corresponding negative amount will be entered, and line 8 of Schedule 1,  will be zero. 

@calambert1970

[ABALLIETT]

I'm using "Home and Small Business" this year. 

Following this instruction above:

"

1. Go to the search box and enter Investment Sales
2. Select Jump to Investment Sales

I do NOT see a place to select "Jump to Investment Sales"  (What am I missing?)

Is this information ultimately being reported on Schedule B? (I had thought ti was going to be on schedule D, but, as I always say: "What do I know?") ) 

HELP! Please....

[DaveF1006]

It depends. Surprisingly, the 1099K is not the most appropriate to report this information but we will make best use of it.  To report this, follow these steps.

1. Open or log into Turbo Tax
2. Go to federal>wages and income>Investment Income>show more
3. Stocks, Mutual Funds, Bonds, Other (1099-B>start
4. If you are in Turbo Tax Online, there will be a question that asks  OK, what type of investments did you sell? indicate personal items other
5. Next screen asks for the name of the issuer and EIN listed on the 1099K
6. Next screen says Now we’ll walk you through entering your sale details.
7. When you see the first drop-down, select personal items and then answer the remaining questions on this page. This will determine your capital gain or loss for the sale and will appear on Schedule D. 
8. Make sure to enter the income amount listed on the 1099K as proceeds. 
9. You will need to enter the cost basis and when you bought the personal item(s).

[ABALLIETT]

THANK YOU! 

Unfortunately, you lost me by item #2! 

Where do I find this: 

federal>wages and income>Investment Income>show more

I'm working on a Mac Desktop machine using Turbotax Home and Small Business.  I'm finding it very difficult to navigate this version of Turbotax.

Would appreciate any/all help. 

Thank you!! 

[ABALLIETT]

I would still appreciate an explanation of the instruction to "use the FIND window to find (whatever) and then use "Go TO' to go to that part of the return. (Maybe there's a filter that I haven't turned on or off?) 

I see no choice of 'go to' in the finder window

I'm on a Mac desktop machine using Turbotax Home and Small Business.

Would appreciate any attempt to straighten me out.

Thanks!! 

[DaveF1006]

Do you see a magnifying glass with a search bar on your screen? I apologize I don't have a Mac screen to see what it looks like but if you can find it, type investment sales and then select the link that says jump to investment sales.

Also I suggest, you contact Turbo Tax Live Product Support as they have the ability to look at your screen to guide you to the exact spot to enter this information since i can't see your program. Please use this link to  Contact Us and within the link will be a phone number for you to call.

[ABALLIETT]

So I called Phone Support. It was VERY disappointing. (I wish Turbo was smart enough to ask customers to review services they offered. How else can they correct 'advisors' who don't know the product and think that a user has time to listen to excuses?_ 

Anyway, I appears that my biggest problem may be that I'm using a desktop mac app in an on-line world. 

Which brings up the question: is there ANY possibility of converting from the desktop version to the online version? 

PART 2

It appears that my Mac desktop application does NOT offer the opportunity to enter "PERSONAL ITEMS - OTHER"  The online support fellow couldn't find it anywhere and neither can I. 

I'm certainly open ton contradictory opinions! 

Thanks to everyone who has been helping me. I would like to know if I"m right and there is a 'advice error' created by individuals understandingly assuming that all the 2020 Turbotax versions have exactly the same interfaces

[DaveF1006]

First of all, there is no way to import data from a Desktop Product to Turbo Tax Online. With this said, was the support person you spoke to able to help you navigate to the spot to where you could enter your investment sales? If so, I have a suggestion on how to report this.

1. Once you are beginning to report your investment sales under stocks and bonds, in the description field, enter personal items from form 1099K. The program will allow you to enter the full content of the text.
2. Enter the information the screen calls for such as cost basis, proceeds, when you sold the items listed on the 1099K (if listed), holding period etc. This will give you a accurate capital gains summary. 

[ABALLIETT]

DaveF1006- 

Thanks for this workaround info. That I can follow

I entered my figures as you stated and the total is moved over to Schedule D as long term capital gain 

But I thought there was a 'preferential tax rate' for long term gains but I don't think I"m seeing any sort of 'discount' on these gains. As far as I can see, they are handled at the same rate as w2 income (?) 

I assume this is delusional optimism but Somewhere I had read that long term capital gains for those with gross incomes below $80k are taxed at 0%. Not the case?

[maglib]

Personal property is taxed at ordinary income rates is why.  The tax law differs on personal vs investments.

 For personal property you also can't take losses.

[sevaru]

Hi, so I followed your steps for option 1 TurboTax Premier for 10 transactions that I had listed on my 1099-K from Paypal which were payments received from ebay sales of personal items. Your instructions seemed to be only for users that had no gains to report (steps 8, 9). I did have some capital gains on 4 of the 10 items so I put in the actual proceeds listed on the 1099-K, my actual cost basis (which was less), and for step 9 I put my ebay value fees, sales tax, and shipping expenses. I wanted to make sure that my deviations for steps 8 & 9 are still ok for me to report this 1099-K correctly? I ended up having $56 of long-term capital gains to pay tax on which is fine.  

@KathrynG3 

[sevaru]

@DaveF1006 

My Form 1099-K from PayPal doesn't have an EIN box. Do I use the number shown in the Filer's TIN box?

[Cynthiad66]

You can enter the income reported on your Form 1099-K (along with any cash or checks you received) as self-employment income on Schedule C.

1. Open or continue your return.
2. Search for Schedule C and select the Jump to link in the search results.
3. Next:
   • If you’re entering info about your business for the first time you'll be asked some general questions about your business. After you answer them, you’ll be taken to the Let's enter the income for (your type of business) work screen.
   • If you’re returning to Schedule C, select Review or Edit next to your line of work and answer any other screens until you reach the Let's enter the income for (your type of business) work screen.
4. Select Other self-employed income.
5. On the Tell us about other self-employed income for your (type of business) work screen, enter your 1099-K information.
6. Select Continue when finished.

If you are entering income from a 1099-K, remember that it reports the gross amount of the transactions. It doesn't include any adjustments for credits, refunds, discounts, or fees. You’ll have a chance to enter self-employment expenses in another part of your return.