1099 nec

mnumbers · ‎January 31, 2022

I received a 1099 NEC for a personal boat that I sold. How do I treat this so it is not taxable. I started filling out the form for 1099 NEC but it said I needed to create a business. Do I need to do this and if so how do I enter the information after the form to show I sold my boat for less than I paid for it?

MinhT1 · ‎January 31, 2022

If you receive this form 1099-NEC for a personal boat for less than you paid for it, 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-NEC on your tax return. Just keep it in your tax records along with any proof that it was for the sale of your boat.

Please read this TurboTax Help topic for more information.

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