1099k

[zywq]

I have gains and losses for personal items I sold on ebay (about 400 different transactions for 2024) . I am reducing personal items that I have owned the last 60 years. I do not have a business or hobby, it is more like a online garage sale. I am retired and do not rely on sales. just trying to get rid of stuff. I do not have reciepts for cost base. Can I use the fair market value?  Do I have to list  every  transaction separately? Where do I put the gains and where do i do the losses for reporting the 1099k?

[SabrinaD2]

When selling personal items on eBay, here's how to handle reporting the sales and entering the 1099-K:

• Report Gains: Report gains from the sale of personal items on Form 8949 and Schedule D (Form 1040). Gains from the sale of personal items are taxable. See the steps below.
• Do Not Report Personal Losses: Personal losses from the sale of items are not tax-deductible.
• Estimate Cost Basis: Use a reasonable method to estimate the cost basis, such as the fair market value (FMV) at the time of purchase. Keep detailed records about how you calculated the FMV.

Steps to Enter Your 1099-K in TurboTax

1. Make sure you are logged in to TurboTax.
2. Open or continue your return.
3. Open or continue your return.
4. Click her to go to 1099-K.
5. Follow the onscreen instructions to enter your 1099-K.

Additional Tips

• Keep Records: Maintain any documentation or records that support your FMV estimates and sales transactions.

[zywq]

Will i have to make an entry for each sale with date of gain and amount or can I put in total figure trhat will be added up?  You mention not putting loses in. how will it balance out the 1099k or does it have to under other adjustment?

[Expert Bookkeeping Solutions]

You can put a total figure, but you have to have a corresponding list / worksheet that details each item and the cost basis totaling to any profit gained.  When you enter the totals, you need to have documentation that explains what makes up that total and references which cost/valuation method you used.  If you can, estimate when the purchase was made and for how much (to the best of your recollection) for each item.  You can print out a sales log from Ebay that will be a great place to start, then for each item enter a cost and calculate the profit.  Keep in mind that these were business transactions to a certain extent, even if you did not form a company, and that there are expenses that are deductible such as packaging costs, postage (if shipped for free), mileage to and from the post office, general office expenses, Ebay listing fees and final value fees, etc.