1099-K from Ebay

Forum|Forum|3 years ago
January 31, 2023
1 reply
6 views

I received a 1099-K from eBay for $1,361.78 as a hobby seller. The items were sold for less than what I paid for them at a loss. When I enter the amount under "other income 1099-k cost of goods sold" as a loss, do I need to enter the actual amount I paid or just the $1,361.78 to off-set? If I enter the actual amount then my refund increases but from what I read on IRS.gov it can only off-set and should be a net zero.

MinhT1

Level 15

If you receive this form 1099-K for selling old personal items on Ebay for less than you paid for them. You have made a loss on personal items. This loss on personal items is not deductible and is not reported on your tax return.

If this is the case, you do not need to report this form 1099-K on your tax return. Just keep it in your tax records along with any proof that it was for the sale of old books.

Please read this TurboTax Help topic for more information.

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rhinojr28Author

Level 2

The sales were hobby income from selling sports cards. Is there a differentiation between that and personal items?

MinhT1

Level 15

A hobby is not a business.

You do not report losses, but if you sold the items at more than you paid for (you made a profit) then this profit is a capital gain which has to be reported.

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