I have a 1099K from Paypal for some sales that I did on ebay. I sold all of these items at a loss as these were used goods that I purchased for retail.

[gregchew]

I keep getting the error the amount in box 1a (>5000) is too high or includes some personal transactions. Enter the amount that shouldn't be included. The 5000 is all used things that I purchased for far more than $5000 for. I do not understand why I would have to pay tax on $5000 if I have already paid sales tax and COG on these items.

[KrisD15]

When you enter the 1099-K, you need to report that all sales sold at a loss or no gain. There will be no taxable income generated from those sales. 

In TurboTax enter the 1099-K under:
Income
Other Common Income
Income from Form 1099-K     START

On the “Did you get a 1099-K?” screen, select “Yes”
On the “Which type of income is your 1099-K for?” screen, select “Personal item sales”     CONTINUE
Enter the 1099-K as it was reported
CONTINUE
On the next “Personal Item Sales” screen, make the correct selection. 

Choose “All items were sold at a loss or had no gain” If ALL the items were sold and you did not realize a gain on any single item, (they sold for less than or only for as much as you paid to purchase the item in the first place) you would not need to enter any sales. There would be no taxable income.