Normally, you would not report the sale of your personal items
because you sold them for less than you paid for them.
One option is to leave it off
and if the IRS questions it, then show them your
documentation. Print out or screen shot something from Paypal
showing what you sold was used personal items.
But, since it was reported on a 1099-K and the IRS receives a copy, I would report it this way. It zeros out, so it doesn't affect your taxes, but it acknowledges that you included the 1099-K on your return:
Enter it under Wages & Income tab at the top:
- On Your 2017
Income Summary,
scroll down click on Start next to Miscellaneous
Income,
- Then scroll down and
choose Other reportable income
- Answer Yes to "Any
Other Taxable Income?"
- Under Description put "1099-K Personal Property Sales "
- Enter the amount from the 1099-K in the
next box, click continue,
- Click on "add
another income item",
- Under Description this time put "1099-K Cost
of Personal Property"
- Enter the same amount
but as a NEGATIVE number.
- On the Other
Miscellaneous Income Summary make sure you see the 2 items, one positive
and one negative and Total is $0.
The IRS will not allow you
to deduct a loss on personal items that you sell.
