1099 - k sale of tickets at both a loss and a profit

[REF531]

I am having a circular error when trying to record my 1099K from Stubhub.  I sold 20 games from my Season Ticket holder package, some with profit and others with losses.  I have loaded each game that generated the payments from Stubhub and they all balance to the 1099K.  The circular error on Turbo Tax is that the reconciliation on the 8949 worksheet keeps stating that the amount reported does not match the 1099K form in a box above the calculations.  This is because the worksheet is picking up the proceeds from the sale of the gains and not the losses. 

Example $10k in proceeds, $7K in gains and $3K in losses.  The amount carried through to the worksheet is $7K and says I have an error...that I cannot adjust.  However the information in the details in the worksheet show the correct total...but the circular error message still appears.  TT says I am not done with the return...what should I do to reconcile the form?

The step by step acknowledges that there were some losses that will not reduce the tax and I understand that.  This appears to be a TT circular error that I cannot figure out how to correct or override so I can complete my return.

[KrisD15]

If you are reporting this as sale of personal items, only gains are included as income and loss is disregarded.

Loss does not offset gains when selling personal items. 

If you do want to offset gains with loss, you need to report the sales as a business, using Schedule C. 

Loss will offset gain, you can claim any expenses relating to the business if there are any, but you also will be subject to Self-Employment tax which is the FICA tax employers withhold and pay for employees. 

IRS LINK 

[bocabroker]

Try entering it as one sale. Put one price for purchase (add up them all, and another total for sale price).

This should work, particularly if there total is not a loss.  If the total is a loss, and its de minimus, try raising the total cost to the sake price, thereby having no loss. 

IDK for sure, out if you want to book a loss, it might have the be a schedule c business. 

[KrisD15]

Unless you file Schedule C as a business, you can not report even one sale that resulted in a loss.

It would be as if you had a garage sale and sold 100 items at a loss, but one thing sold for a  $100.00 profit. 

You would need to claim and pay interest on the $100.00 profit.

If the 1099-K reports $500.00 and only that one thing made a profit, you subtract the loss from the 1099-K FIRST, then you report the sale that made the profit. 

So lets say the thing that made a profit was something you purchased for $50.00 but sold for $150.00 so you made a profit of $100.00.

That means that $150.00 on the 1099-K was payment for that item, so $350.00 on the 1099-K was for things that sold at a loss.  Subtract the things that sold at a loss from the 1099-K. That would be 500 - 350 = 150. 

Now you know that you must account for the 150.00 on the 1099-K.

You do that by reporting the sale, someone paid 150 (sale proceeds) it cost you 50 (your cost/basis) which results in 100 profit. $100.00 is added to your income. 

@bocabroker 

@REF531 

[REF531]

Thank you for the response but that is not really my question.

I am having a circular error in TT that is not bringing the 1099K total over to the 1099B worksheet in the reconciliation box correctly.  The program is only bringing over the gains so it is not reconciling to the Stubhub 1099K form.  This is causing an error message that I can not get past to finalize my return.

it appears the Capital gains are calculating correctly, the forms are being completed with the correct amount, I think, but it is still showing a circular error basically the program wants that reconciliation box to match the 1099K and it won't because there are losses and I cannot figure out how to add information to change it.

I just want to be sure that is really what the program is telling me is wrong.  I am not a tax expert and when the program stops the return with an error, I get concerned.

Thanks

I

[KrisD15]

You have to adjust the 1099-K first, then enter the sales to match the adjusted 1099-K. 

In TurboTax enter the 1099-K under:

Income
Other Common Income
Income from Form 1099-K     START

On the “Did you get a 1099-K?” screen, select “Yes”
On the “Which type of income is your 1099-K for?” screen, select “Personal item sales”     CONTINUE

Enter the 1099-K as it was reported and select the box for “This amount in box 1a is too high or includes some personal transactions” in order to enter any personal items such as birthday gifts.
CONTINUE

On the next “Personal Item Sales” screen, make the correct selection. 
Choose “I sold some items at a loss or had no gain” if you made a profit on any individual sale
Choose “All items were sold at a loss or had no gain” If ALL the items were sold and you did not realize a gain on any single item, (they sold for less than or only for as much as you paid to purchase the item in the first place) you would not need to enter any sales.

Enter the amount of the 1099-K that represents the cash you got for selling items at cost or under. 
So, if the 1099-K reports $1,000 and the only item you sold at a profit was an item that sold for $50, you would enter 950.
$950.00 on that 1099-K does not need to be addressed. 
Also, remember that this is NOT saying you MADE $50, only that someone paid $50. The profit would be less because you need to subtract what you paid to buy it. 
CONTINUE

Finish the interview and select done on the “Your 1099-K summary” screen, 
YOU ARE NOT DONE if you made the first choice that only SOME items sold at a loss,
that would mean that at least one item sold at a gain, for a profit. 
Now you need to report the sale, go to 

Income
Investment Income
Stocks, Cryptocurrency, Mutual Funds, Bonds, Other    click UPDATE

The next screen should show “Personal items sales (1099-K)” 
Click REVIEW to open 
The next screen has an input screen for the Personal items you sold at a
profit/gain.
Enter one sale at a time.
Report when purchased, when sold, how much you paid to buy it and how much they paid to buy it from you

The next screen asks for selling fees, but those are USUALLY deducted before they pay you, so would not be included on Form 1099-K
If they were not deducted previously, enter here

Once done, you should see the amount of proceeds you needed to address ($50) and the profit you made from that (those) sales. 
The profit is Capital Gain listed on your 1040 line 7