1099-K instruction issue in TT Software (Premium)

[missy421]

Hello,

We received a 1099-k from eBay from personal item sales that were only around $1,300.00 unfortunately. These were items over 20 years old as we are liquidating to move. They items were definitley sold at  a loss. However, the TT software is not recognizing that and has a check error for us to enter additional info about the sales (I am pasting the instuctions below per the help directions). When I go back to the "Your Investments an Savings Summary Screen"

TT instructions that don't match my options below....

1. On the Your income and expenses screen, select Start or Edit/Add next to Investments and Savings (1099-B, 1099-INT, 1099-DIV, 1099-K, Crypto).
2. On Your Investments and Savings Summary screen, you’ll see a line item for your 1099-K income *****THIS IS NOT ACCURATE, NO LINE ITEM FOR 1099-K EXISTS WHEN I DO THIS. The only option is to access the "Income from Form 1099-K" under the main Income and Expense section , not the Investment and Savings 1099-B, 1099-INTm, 1099-DIV, 1099-K, Crypto sections)***********. Select Edit or Review and enter the information for the first personal sale item.
• Make sure Personal items is selected under What type of investment did you sell?
• The Total amount paid should be the amount you originally paid for the item.
3. Select Continue when you’re finished to go to the Review your Sales screen.
• If there was more than one personal item sale included in the 1099-K amount, select Add another sale to add each item.
• If not, you can Continue.

If you sold your personal item(s) for a loss, that loss cannot offset other income on your tax return like capital loss items (stocks).

If you sold your personal item(s) for a gain, then you’ll need to pay short or long term capital gains tax on it, depending on how long you held the item. This is why you should enter each item separately and not net them together.

[MindyB]

Here is how to report personal items sold at a loss in TurboTax Online:

• Within your tax return go to the magnifying glass icon on the top right, type 1099-K and select the Jump to 1099-K link in the search results
• Choose Add a 1099-K
• The next screen will ask "Which type of income your 1099-K is for?" choose Personal item sales, then Continue
• Enter the information from your 1099-K
• After you choose continue, the next screen will show "Personal Item Sales". Here is where you choose "All items were sold at a loss or had no gain"
• Skip the investments and savings section directions because you do not have a gain to account for.

[missy421]

Thank you! I had to choose the first option on the screen that some had a loss and some gain in order for the form to propagate. Thank you either way.