how to cancel out sales from 1099-k ebay form on turbo tax

[Keystone Cowboy]

I sold one high dollar item at a loss on ebay, received a 1099-K form. entered the 1099-K in other common income, clicked personal sales and sold at no gain or loss but always shows needs review at the end. if I change it to other instead of personal sales, it now shows me owing thousands of dollars but the needs review goes away at the end. How to I cancel out this sale from ebay as it was a loss?

[DianeW777]

It seems you did not enter the cost. See the information below and review the 1099-K entry to be sure you entered your cost, which is the same as the income if personal use item sold at a loss.

Personal Items Sold at a Loss.

The costs associated with the sale of personal items can be used to offset the income from those items.  If these times were sold at a loss, you can simply track this information and keep it with your tax return (you need this in any event) without reporting it.  Otherwise you report the income and cost at the same amount because a loss is not allowed for this transaction.

Personal Items Sold at a Gain.

One personal item or a group of personal items sold in one transaction or many that results in a gain requires the gain to be taxed. 

It's not necessary to enter each individual sale as long as you have the detail to show how you arrived at your return data.

[Keystone Cowboy]

nothing asks me about the cost. It only asks me to enter the gross amount of 1A which I did. I entered the amount from the 1099-K box 1A into box 1A on the turbo tax form.

[JamesG1]

When entering the IRS form 1099-K, try not selecting:

This amount in box 1a is too high, or 

I sold some items at a loss or had not gain.

You would report the loss on the sale on Schedule D of the Federal 1040 tax return.

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 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.

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.

@Keystone Cowboy