1099-K selling tickets at a mix of gains and losses

[m1akk00]

I had baseball season tickets.  We used SeatGeek to sell them and got a 1099-K.  We sold some of them at a gain and others at a loss.  We also had some that we listed that failed to sell altogether.   

When I compute the basis for all the sales, can I include the total cost of all the tickets that we listed on SeatGeek?   In other words, can I add in the basis the cost of the tickets that went unsold? 

Or do I only get to count the basis for the tickets that actually sold?  

Or worse still, do I only count the basis for the tickets that sold above face value and need to record the basis for the ones that sold below face as the amount that I received for those tickets?  Thanks!

[JamesG1 · Accepted solution]

I assume that you are selecting the personal item sale option of recording the IRS form 1099-K income.

If that is the case, personal items sold for less than their basis (most likely, the original purchase price) report $0 capital gain on line 7 of the Federal 1040 tax return.  Since recording losses will not be allowed, it would make no difference whether the cost of the unsold tickets is reported or not.  Reporting the additional loss of the unsold tickets will not be allowed.

Personal items sold for more than their basis report the gain on line 7 of the Federal 1040 tax return.  See this example.

                                         Selling                   Cost

                                         Price                      Basis

Couch                              $500                       $2,000                 Capital loss on personal item = $0 loss

Jewelry                             $400                       $300                    Capital gain on personal item = $100 gain

Chair                                $100                       $100                    No capital gain or loss

                                         $1,000                   $2,400

Schedule D will report a $100 long term capital gain.

Federal 1040 tax return line 7 reports $100 long term capital gain. 

To report Personal item sales in TurboTax Online, follow these directions.

• Down the left side of the screen, click Federal.
• Down the left side of the screen, click Wages & Income.
• Scroll down to Other Common Income click on the dropdown menu.
• Click Start to the right of Form 1099-K.
• At the screen Did you get a 1099-K?, select Yes.
• At the screen How would you like to upload your 1099-K? click Type it in myself. 
• At the screen Which type of income is your 1099-K for, select the button for Personal item sales.  Click Continue.
• At the screen Let's get the info from your 1099-K, enter the information.  Click Continue.
•  
• At the screen Personal Item Sales, you are told that further information will need to be entered.  Learn More provides detailed information for the next steps.  Click Continue.
• At the screen Your 1099-K summary, notice that the income relates to ‘Personal Items’.  Click Done.
• At the screen Your income and expenses, scroll down to Investments and Savings (1099-B, 1099-K….).  Click Edit/Add.
• At this screen, you will be asked to Review the Personal item sales (1099-K).
• At the screen Now, enter one sale…., answer questions about the personal item sale.  Click Continue.
• At the screen, Let us know if any of these situations apply to this sale, sales expenses may be recorded.

The entry will be reported:

• on Schedule D of the Federal 1040 tax return, and 
• on line 7 of the Federal 1040 tax return.

Capital loss for a personal item sale reports $0 capital gain on line 7 of the Federal 1040 tax return.

Make sure that you retain any information about the items sold should you be required to demonstrate to the IRS that this is not taxable income.

[JamesG1]

I assume that you are selecting the personal item sale option of recording the IRS form 1099-K income.

If that is the case, personal items sold for less than their basis (most likely, the original purchase price) report $0 capital gain on line 7 of the Federal 1040 tax return.  Since recording losses will not be allowed, it would make no difference whether the cost of the unsold tickets is reported or not.  Reporting the additional loss of the unsold tickets will not be allowed.

Personal items sold for more than their basis report the gain on line 7 of the Federal 1040 tax return.  See this example.

                                         Selling                   Cost

                                         Price                      Basis

Couch                              $500                       $2,000                 Capital loss on personal item = $0 loss

Jewelry                             $400                       $300                    Capital gain on personal item = $100 gain

Chair                                $100                       $100                    No capital gain or loss

                                         $1,000                   $2,400

Schedule D will report a $100 long term capital gain.

Federal 1040 tax return line 7 reports $100 long term capital gain. 

To report Personal item sales in TurboTax Online, follow these directions.

• Down the left side of the screen, click Federal.
• Down the left side of the screen, click Wages & Income.
• Scroll down to Other Common Income click on the dropdown menu.
• Click Start to the right of Form 1099-K.
• At the screen Did you get a 1099-K?, select Yes.
• At the screen How would you like to upload your 1099-K? click Type it in myself. 
• At the screen Which type of income is your 1099-K for, select the button for Personal item sales.  Click Continue.
• At the screen Let's get the info from your 1099-K, enter the information.  Click Continue.
•  
• At the screen Personal Item Sales, you are told that further information will need to be entered.  Learn More provides detailed information for the next steps.  Click Continue.
• At the screen Your 1099-K summary, notice that the income relates to ‘Personal Items’.  Click Done.
• At the screen Your income and expenses, scroll down to Investments and Savings (1099-B, 1099-K….).  Click Edit/Add.
• At this screen, you will be asked to Review the Personal item sales (1099-K).
• At the screen Now, enter one sale…., answer questions about the personal item sale.  Click Continue.
• At the screen, Let us know if any of these situations apply to this sale, sales expenses may be recorded.

The entry will be reported:

• on Schedule D of the Federal 1040 tax return, and 
• on line 7 of the Federal 1040 tax return.

Capital loss for a personal item sale reports $0 capital gain on line 7 of the Federal 1040 tax return.

Make sure that you retain any information about the items sold should you be required to demonstrate to the IRS that this is not taxable income.

[JamesG1]

I assume that you are selecting the personal item sale option of recording the IRS form 1099-K income.

If that is the case, personal items sold for less than their basis (most likely, the original purchase price) report $0 capital gain on line 7 of the Federal 1040 tax return.  Since recording losses will not be allowed, it would make no difference whether the cost of the unsold tickets is reported or not.  Reporting the additional loss of the unsold tickets will not be allowed.

Personal items sold for more than their basis report the gain on line 7 of the Federal 1040 tax return.  See this example.

                                         Selling                   Cost

                                         Price                      Basis

Couch                              $500                       $2,000                 Capital loss on personal item = $0 loss

Jewelry                             $400                       $300                    Capital gain on personal item = $100 gain

Chair                                $100                       $100                    No capital gain or loss

                                         $1,000                   $2,400

Schedule D will report a $100 long term capital gain.

Federal 1040 tax return line 7 reports $100 long term capital gain. 

To report Personal item sales in TurboTax Online, follow these directions.

• Down the left side of the screen, click Federal.
• Down the left side of the screen, click Wages & Income.
• Scroll down to Other Common Income click on the dropdown menu.
• Click Start to the right of Form 1099-K.
• At the screen Did you get a 1099-K?, select Yes.
• At the screen How would you like to upload your 1099-K? click Type it in myself. 
• At the screen Which type of income is your 1099-K for, select the button for Personal item sales.  Click Continue.
• At the screen Let's get the info from your 1099-K, enter the information.  Click Continue.
•  At the screen Personal Item Sales, you are told that further information will need to be entered.  Learn More provides detailed information for the next steps. 
• Click Continue.
• At the screen Your 1099-K summary, notice that the income relates to ‘Personal Items’.  Click Done.
• At the screen Your income and expenses, scroll down to Investments and Savings (1099-B, 1099-K….).  Click Edit/Add.
• At this screen, you will be asked to Review the Personal item sales (1099-K).
• At the screen Now, enter one sale…., answer questions about the personal item sale.  Click Continue.
• At the screen, Let us know if any of these situations apply to this sale, sales expenses may be recorded.

The entry will be reported:

• on Schedule D of the Federal 1040 tax return, and 
• on line 7 of the Federal 1040 tax return.

Capital loss for a personal item sale reports $0 capital gain on line 7 of the Federal 1040 tax return.

Make sure that you retain any information about the items sold should you be required to demonstrate to the IRS that this is not taxable income.

[JamesG1]

I assume that you are selecting the personal item sale option of recording the IRS form 1099-K income.

If that is the case, personal items sold for less than their basis (most likely, the original purchase price) report $0 capital gain on line 7 of the Federal 1040 tax return.  Since recording losses will not be allowed, it would make no difference whether the cost of the unsold tickets is reported or not.  Reporting the additional loss of the unsold tickets will not be allowed.

Personal items sold for more than their basis report the gain on line 7 of the Federal 1040 tax return.  See this example.

                                         Selling                   Cost

                                         Price                      Basis

Couch                              $500                       $2,000                 Capital loss on personal item = $0 loss

Jewelry                             $400                       $300                    Capital gain on personal item = $100 gain

Chair                                $100                       $100                    No capital gain or loss

                                         $1,000                   $2,400

Schedule D will report a $100 long term capital gain.

Federal 1040 tax return line 7 reports $100 long term capital gain. 

To report Personal item sales in TurboTax Online, follow these directions.

• Down the left side of the screen, click Federal.
• Down the left side of the screen, click Wages & Income.
• Scroll down to Other Common Income click on the dropdown menu.
• Click Start to the right of Form 1099-K.
• At the screen Did you get a 1099-K?, select Yes.
• At the screen How would you like to upload your 1099-K? click Type it in myself. 
• At the screen Which type of income is your 1099-K for, select the button for Personal item sales.  Click Continue.
• At the screen Let's get the info from your 1099-K, enter the information.  Click Continue.
•  
• At the screen Personal Item Sales, you are told that further information will need to be entered.  Learn More provides detailed information for the next steps.  Click Continue.
• At the screen Your 1099-K summary, notice that the income relates to ‘Personal Items’.  Click Done.
• At the screen Your income and expenses, scroll down to Investments and Savings (1099-B, 1099-K….).  Click Edit/Add.
• At this screen, you will be asked to Review the Personal item sales (1099-K).
• At the screen Now, enter one sale…., answer questions about the personal item sale.  Click Continue.
• At the screen, Let us know if any of these situations apply to this sale, sales expenses may be recorded.

The entry will be reported:

• on Schedule D of the Federal 1040 tax return, and 
• on line 7 of the Federal 1040 tax return.

Capital loss for a personal item sale reports $0 capital gain on line 7 of the Federal 1040 tax return.

Make sure that you retain any information about the items sold should you be required to demonstrate to the IRS that this is not taxable income.

[stuartlloyd1]

I have entered my 2024-1099-K information for Personal Items and I follow the instructions and get out of that screen and go to the income summary screen.  Click on Form 1099-K and it takes me back to the prior screen.  I select the 1099-K that I entered that says personal items.  I get to the point where it gives me two choices, one I have no gains and the other I have losses and no gains.  In my case I have gains and losses that tie into the 1099-K,  I am unable to entered this data, I am just taken back to the prior screens.  How do I enter my data?

[JamesG1]

There are two steps to the process of reporting an IRS form 1099-K with personal items sales.  First you complete entering the IRS form 1099-K information.

• At the screen Let's get the info from your 1099-K, enter the information.  Click Continue.
• At the screen Personal Item Sales, you are told that further information will need to be entered.  Click Continue.
• At the screen Your 1099-K summary, notice that the income relates to ‘Personal Items’.  Click Done.

Then you go to the IRS form 1099-K where cost of sales and selling expenses are reported.

• At the screen Your income and expenses, scroll down to Investments and Savings (1099-B, 1099-K….).  Click the down arrow.
• Click to the right of Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B).
• At this screen, you will be asked to Review the Personal item sales (1099-K).  Click Review.
• At the screen Now, enter one sale…., answer questions about the personal item sale.  Click Continue.
• At the screen, Let us know if any of these situations apply to this sale, sales expenses may be recorded.

The entry will be reported:

• on Schedule D of the Federal 1040 tax return, and 
• on line 7 of the Federal 1040 tax return.

Capital loss for a personal item sale reports $0 capital gain on line 7 of the Federal 1040 tax return.