How to report 1099-K from eBay or Poshmark on TurboTax? Especially when most sales were personal items and were sold at a loss? How to deduct cost?

[omg_tax]

I sold my used clothes on eBay and Poshmark to recoup some money (not as a business). Most of the clothes were sold for far less than what I originally paid. Occasionally, some items were sold for more than what I paid due to high demand. In total, I have made sales over $1000 on eBay and Poshmark, so I am expecting two 1099-Ks.

My questions are:
1. How do I report the original cost of my clothes? I do have some online receipts, but not every item has its original receipt. Will my credit card bank statement that says "on 01/01/2019, $$$ amount was paid to American Eagle Outfitter" count?  

2. I was told 1099-k / personal sales can not have negative numbers in the end? How would that work? What if I sold for less than what I paid?

3. Will I only be taxed on the net gain that I made?

[ColeenD3]

1. How do I report the original cost of my clothes? Yes, any proof that you have that shows the amount you paid works.

2. What if I sold for less than what I paid? You will only include amounts up to what you received. If you wish to take a loss, you must treat this as a business.

3)  Will I only be taxed on the net gain that I made? Yes, if you have one. Since you are zeroing out your income, you shouldn't have one.

Please see this answer from @PattiF.

For reporting Form 1009-K for personal items sold not associated with a trade or business, you can report this as Miscellaneous income.

• From the left menu, go to Federal and select the first tab, Wages & Income
• Add more income by scrolling down to the last option, Less Common Income, and Show more
• Scroll down to the last option, Miscellaneous Income, 1099-A, 1099-C and Start
• Choose the last option, Other reportable income and Start and Yes
• Enter the applicable description and amount and Continue
  • First, enter Form 1099-K as received. It is essential that the full amount be entered.
  • Next, enter an adjustment as a negative number to reflect the cost of these items and the sales expenses  (but not more than the sales price. You can't produce a loss.)