1099k cost basis balancing issue

[rgold9999]

TurboTax, I've been on with 9 different experts - and have spent over 10 hours trying to get this issue resolved. Your program has a clear gap.  I sold sporting tickets (just like the entry for concert tix on personal item sales) for a small profit.  The 1099k reported the total which included the vendor (Live Nation's) fees, as well as my own ticket costs. In trying to account for the cost basis, I am stuck in an infinite loop.

Box 1 of the 1099k reports what the vendor stated to the IRS

Below that I enter the amount that should not have been included (my cost basis - what I paid for the tix and fees)

the next tab is not applicable - as it gives two radio buttons for loss scenarios.

when I close it out - it gives me an error when I go to submit my taxes, showing the net profit that I made, where the form still expects the gross amount provided by the vendor.

if I replace it to that cost, it does not account for my cost basis and raises my taxes. 

Please simplify your program!

[Bsch4477]

Assuming your sale was not a business report the total income and then report another 1099-K with a negative value equal to your cost basis. 

[rgold9999]

I understand how this will balance out...but that means I am creating a 1099k on my own? What do I put in for the Filer, or Filer Fed tax ID number.  This would just be a made up form and doesn't seem right. What if the Fed Government asks the filer to validate this form - they would say they know nothing about it.

I don't understand why the software can't account for this very common situation.  I am not a business, and we are talking about $1900 in total here....well under $20k.

[Bsch4477]

Instead of a 1099-K do it with “other income” with the text adjustment for 1099-K cost basis”.

[rgold9999]

I took this step, but when I go to file, I still get the same error, and I have no ability to fill out form 8949 or the Capital Assets Sales Worksheet.

I get the message "Form 1099k has an amount from Linked Forms (1099k), but the sales proceeds on this worksheet don't match the payment amount from Form 1099k. Add Sales on this worksheet with sale proceeds to match the amount reported on Form 1099k.

I have no ability to enter into that space (8949 or Capital Assets).  I can't tell you how frustrating this simple submission has become.

Do you work for TurboTax?  Thank you for your reply.

[Bsch4477]

Do this. 

You can report the amount in Part 1, Line 8z, Other Income of Schedule 1, Addition Income and Adjustments to Income and also report the the non-taxable amount in Part 2, Line 24z, Other Adjustments of the same form. This process adds an amount to your income and then subtracts an amount from your income while at the same time accounting for the amount shown on the 1099-K on your tax return so that it matches the IRS records.

No, I don’t work for TurboTax. I’m just a user trying to help people. 

[bonniesuern68]

I am having the same issue. When I go and put the 1099-K in to turbotax form eveything is fine until it runs a check and then I keep getting an error message and no matter what I do it keeps giving me error messages. I have been trying different things for hour now and nothing works to allow me to move on. I am so very frustrated. Does anyone know how to fill out the form that comes up that states there are errors. I think I need to subtract my cost to sell the item such as what I orginally paid for it, what it cost to send etc. to and then it break down to show my actual profit. I have tried everything to make it happen but I always get error messages.

Thank you for any help.

[JamesG1]

The posting of IRS form 1099-K for personal item sales is a two-step process.  

• First, you post the IRS form 1099-K amount of box 1a.  
• Second, you post the IRS form 1099-B Proceeds  From Broker and Barter Exchange Transactions to report the sales proceeds and the cost of sales.

Make sure that the amount reported on the IRS form 1099-K box 1a equals the Proceeds reported for the multiple entries of IRS form 1099-B.

In TurboTax Online, to report Personal item sales, follow these directions.

• Down the left side of the screen, click Federal.
• Down the left side of the screen, click Wages & Income.
• Click the drop down arrow to the right of Other Common Income.
• Click 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, 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 the down arrow.
• To the right of Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B), select Start/Revisit.
• 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.
• Select Add another sale as needed.

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.

@bonniesuern68