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?
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.
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.
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.
The entry will be reported:
Capital loss for a personal item sale reports $0 capital gain on line 7 of the Federal 1040 tax return.