1099-K for sales of inherited items - where is the amount included in the return?

[Megaleg07]

We sold several items on eBay that we inherited within 6 months of my relative’s date of death, resulting in $7K in gross sales reported on a 1099-K.  We input the information as “personal item sales” and that “all items were sold at a loss”.  Where is the $7K reflected in the final return? I don’t see an additional schedule displaying the $7K; shouldn’t the amount be reflected somewhere even if we aren’t required to pay taxes on it?

[RobertB4444]

Yes.  At the top of the schedule 1 for form 1040 for this year there is a line that says "For 2024, enter the amount reported to you on Form(s) 1099-K that was included in error or for personal items sold at a loss" and then there is a box.  The amount will appear there and not be included anywhere else on your return.

@Megaleg07 

[Megaleg07]

I’m looking at the return that TurboTax has generated and there is no Schedule 1 included.  This is the frustrating thing: Why wouldn’t TurboTax automatically generate the Schedule 1 based on my input?  I saw another post where someone had a similar situation: No Schedule 1 produced and sent to the IRS by TT, so, theoretically, no evidence that I accurately reported the 1099-K amount as required. So, am I just waiting for the IRS to potentially contact me down the road because they can’t see that I reported the sales appropriately???

[JamesG1]

If you have not yet filed your 2024 Federal 1040 tax return, as a test, add $1 to other income.

The income will be reported on line 8z of Schedule 1 and you will be able to see the amount that was included in error or for personal items sold at a loss at the top of the form.

Print out the form and retain the form with your records.

In TurboTax Online, follow these steps to report $1 in other income.  Then remove the $1 before you file your Federal 1040 tax return.

• Select Federal from the left side menu.
• Click on Wages & Income.
• Click the down arrow to the right of Less Common Income.
• Click to the right of Miscellaneous income….
• Click to the right of Other reportable income.
• At the screen Other Taxable Income enter a description of the income and $1.

@Megaleg07