Entering 1099K for selling sports tickets? I keep getting a check error about linking to Schedule C.

[JamesG1]

IRS form 1099-K may report income of different kinds.  Is self-employment income not correct?  

What is the nature of your sale of sports tickets?  If self-employment is not correct, is your sale of sports tickets a Hobby?  Or reported as a Personal item sale?

Self-employment is one of the kinds of income that may be reported and may be appropriate if you are in the business of buying and reselling sports tickets.

However, you may want to delete your IRS form 1099-K entry and your IRS Schedule C entry and re-submit the IRS 1099-K information.

See also here.

[firstgar-verizon]

I am a season ticket holder who cannot attend all the games so I post them via SeatGeek to sell.  I was using Personal items sale.  I lost more than I made (overall), but 2 of the 4 sales ended up making me a whopping $20 total (one sale alone lost over $100, but that just zeroes out for tax purposes).  Should I click the button about some of the sales were done at a loss?  And once the info is entered, I then go into the section and post all the transactions for the sales.  When I Smart Check, I get:  Form 1099-K Wks (SeatGeek, Inc.): A link to Schedule C or another source for the amount reported in box 1 must be selected.  To associate this amount with an activity on Schedule C, D, E, F, or Form 4838, double-click on the field provided.  Otherwise, check the box that applies to this income. If the amount was reported in error, there is a box in the reconciliation section below for that purpose.

[JamesG1]

If you are reporting sales as Personal item sales, you will be reporting the entries on IRS Schedule D.  Associate the 1099-K income with Schedule D and not the other Schedules.

It may be easier to delete your IRS form 1099-K entry and your IRS Schedule C entry.  Then Review to clear all errors then re-submit the 1099-K information.

When you enter the sales information, you will want to click the button to report the loss on sale of a personal item.  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.

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

Tix 1                   $500              $1,000        Capital loss on personal item = $0 loss

Tix 2                   $400               $300          Capital gain on personal item = $100 gain

Tix 3                   $100               $100          No capital gain or loss

                            $1,000           $1,400

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.
• You may need to click Add more 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.
• Because $600 of the selling price will not be reported, enter $600 under I sold some items at a loss or had no gain. 
• 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.  
• Because you are only reporting the gain transaction, report  $400 as Proceeds and $300 as Total amount paid.
• 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.

[JamesG1]

If you are reporting sales as Personal item sales, you will be reporting the entries on IRS Schedule D.  Associate the 1099-K income with Schedule D and not the other Schedules.

It may be easier to delete your IRS form 1099-K entry and your IRS Schedule C entry.  Then Review to clear all errors then re-submit the 1099-K information.

When you enter the sales information, you will want to click the button to report the loss on sale of a personal item.  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.

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

Tix 1                   $500              $1,000        Capital loss on personal item = $0 loss

Tix 2                   $400               $300          Capital gain on personal item = $100 gain

Tix 3                   $100               $100          No capital gain or loss

                            $1,000           $1,400

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.
• You may need to click Add more 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.
• Because $600 of the selling price will not be reported, enter $600 under I sold some items at a loss or had no gain. 
• 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.  
• Because you are only reporting the gain transaction, report  $400 as Proceeds and $300 as Total amount paid.
• 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.

[JamesG1 · Accepted solution]

If you are reporting sales as Personal item sales, you will be reporting the entries on IRS Schedule D.  Associate the 1099-K income with Schedule D and not the other Schedules.

It may be easier to delete your IRS form 1099-K entry and your IRS Schedule C entry.  Then Review to clear all errors then re-submit the 1099-K information.

When you enter the sales information, you will want to click the button to report the loss on sale of a personal item.  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.

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

Tix 1                   $500              $1,000        Capital loss on personal item = $0 loss

Tix 2                   $400               $300          Capital gain on personal item = $100 gain

Tix 3                   $100               $100          No capital gain or loss

                            $1,000           $1,400

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.
• You may need to click Add more 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.
• Because $600 of the selling price will not be reported, enter $600 under I sold some items at a loss or had no gain. 
• 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.  
• Because you are only reporting the gain transaction, report  $400 as Proceeds and $300 as Total amount paid.
• 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.

[firstgar-verizon]

Thank you for the guidance!  I followed your steps and now receive no errors.  My mistake was that I was not entering the correct number for the proceeds that were a loss or no gain.  I realize with your help that was for the total ticket sales that were no gain or a loss and I was entering the total amount I paid minus the amount I gained.  Once I entered the amount for the tickets sold at a loss or no gain, when I entered the 2 sales that had a gain I received no errors.