I received a 1099k of 1,000 sold personal items on ebay how do i report this Im not a business

[PattiF]

This can be reported as the sale of items not associated with a business so this won't be considered as self-employment income.

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.) 

[namontes]

By enter 1099K as received you mean in the "Self-Employment Income and expenses" tab right?

[jetsaredim]

For reporting these sales as investments, I have a 1099-K from PayPal that just lists monthly totals (yearly total around 1800 not a ton but obviously over the reporting threshold).  Some months were only $10 one month was over $1000.  Should I just lump them all together into a single line item with a 12/31/21 sell date or list each month separately.  Some months had multiple transactions some only one.

[ColeenD3]

No, follow the steps listed by @PattiF. If you are not in business, but are selling personal items as you would a garage sale, then you can zero out the income since you definitely sold items for less than what you paid for them.

@namontes

[jetsaredim]

I was planning to document a roughly 10-15% profit on them as I'm not really sure and if I ever got audited or something I would at least have made some good faith effort to claim something on it.

[jetsaredim]

I'm not seeing any option to enter an adjustment.  Or would I be entering it as a separate income line with a negative value?

[ColeenD3]

You said, "Or would I be entering it as a separate income line with a negative value?" Yes, add a second negative entry.

[Tacoman]

@PattiF @ Does this work for states with minimum reporting requirements of $600 (like VA)? Will the state come after me because I did not explicitly file the 1099-k? If I use the method you outlined how will the irs and state know that this income is for the 1099-k that I r

[ZoltanB45]

The IRS will put it together. Similar to someone who gets multiple, 1099's, they would not enter them individually but add it together in their revenue.

[swil0407]

what about a 1040 schedule 1 can we fill that out instead for personal items sold?

[ErnieS0]

Yes. You can report online sales on Form 1040 Schedule 1 if you are not running a business.
 

Your options are hobby income or occasional sales.

Hobby income means you make regular sales but are not selling to make a profit. For example, you may collect baseball cards and are always looking to upgrade your collection, so you regularly buy and sell cards.

Occasional sales mean you aren’t making regular sales. For example, you may sell a bunch of items to clean out your home each spring.

Here’s how to enter your Form 1099-K on Schedule 1:

1. Type 1099-k in Search (magnifying glass) in the upper right
2. Tap Jump to 1099-k
3. On “Did you get a 1099-K?" say Yes
4. On “Choose which type of income your 1099-K is for," select Personal item sales or Hobby Income

@swil0407 

[Caseyblue]

Not sure I understand. how best to report receipt of 6 separate 1099k"s.

3 from StubHub, 2 from LiveNation,  and 1 from eBay

I have TurboTax Deluxe

[KrisD15]

One thousand dollars or one thousand things?  

If you sold one thousand ITEMS, the IRS might think you are running a business. 

At any rate, you enter the 1099-K under 

1. Income
2. Other Common Income
3. Income from Form 1099-K

Select "Personal item sales" if that is what this is reporting

Continue and enter the 1099-K as it was reported

This next part is important-

     If this is simply selling personal items, you CANNOT claim any loss for any items you sold for less than what you paid for them HOWEVER you must claim the gain on ANY item you sold. The loss on some items CANNOT be used to offset the gain on a different item. 

If you had NO gain on ANY sales, select "All items were sold at a loss or had no gain" 

Continue and you are done with that 1099-K. 

If ANY item sold at a gain, select "I sold some items at a loss or had no gain" 

On the next screen enter the amount EXCLUDED from any gains. So if the 1099-K reports $500, and $400 of that was for things you sold at a loss (or for the same as what you paid) enter 400.

Continue Select Done, however now go to 

Investment Income 

Stocks, Mutual Funds, Bonds

Click Start or update 

The 1099-K you just entered will be listed there

Click Edit for that merchant 

Continue through "Confirm your financial institution info" 

Click ADD for "Here's all the sales reported ..."

Select "I'll enter one sale at a time" OR "I'll enter a summary for each sales category" depending on your situation. 

Enter the pertinent information regarding the sales that resulted in a profit, including what you paid (Basis) and what you sold it for (Proceeds)

If you owned it for one year or less, it is short-term

If you owned it for more than a year, it's Long-term 

Repeat for each 1099-K you recieved.

[colby_parker]

Hello,

I am in a similar situation as the OP for this thread.  I sold collectible trading cards (in over 1200 transactions) that I have owned for years via TCGplayer (now an eBay subsidiary) and received a 1099-K although my gross amount of payment card/3pn transactions was under $20,000.  I do not personally consider this a business as I don't rely on it for income, engage in it very sporadically (all of my sales in 2022 took place in the first half of the year), and am also still purchasing new collectible cards so to me it behaves much more like a hobby or sale of personal items (in a garage-sale type of fashion).  I don't believe I've ever received a 1099-K for this sales activity before, although I did sell through TCGplayer in 2021 and 2020.  Additionally complicating things is the fact that since these are all old cards, most of which are not more valuable than a couple of dollars, I have no purchase records for any of them, since most of them I bought over a decade ago.

Since I have no purchase records or means of establishing a cost basis for anything, it seems wrong to treat this as investment income.  I don't know for sure whether all of the items were sold at a loss or only some of them.  It's also weird to call it hobby income since it's not actually related to hobby activity-- I'm not producing any new things to sell, just getting rid of old things.  It just involves assets that are a part of my hobby.   But I also don't treat it as a business: I have no formal records, never intended to turn a profit from purchasing new collectibles, and only make sales rarely at this point as my inventory is depleted. 

Could you please advise on the most appropriate way to report this income?

Thanks

[RobertB4444]

There is a category for collectibles and since these are collectible cards, that seems the best way to report them. 

First, report it in the Investments section where you can also enter the cost of the collectibles. 

Then enter the Form 1099-K as it is received, in the Other Common Income section, so that it matches what was reported to the IRS.  
TurboTax will prompt you to link the two entries.

For TurboTax Online:

1. Go to Wages and Income
2. Scroll to Investments and Savings, select Show More
3. Select Start for Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B).
4. On Your Investments and Savings Summary screen, you’ll see a line item for your 1099-K payment. Select Edit or Review and enter the information for your personal items sale. 
   • Be sure to select Collectibles under the What type of investment did you sell?
   • The Cost or other basis amount should be the amount you originally paid for the item.
5. Select Continue when you’re finished to go to the Review your Sales screen.
   • If there was more than one collectible item sale included in the 1099-K amount, select Add another sale. You can group together sales but should not mix sales with losses and sales with gains, or sales for items held less than a year with sales held more than a year as these gains are taxed at different rates.
      

Next, return to the Wages and Income main screen and scroll down to Other Common Income to enter the Form 1099-K.

Note:  This screen mentions a Form 1099-B but you do not need one to report the sales. 

Or, various dates

Since you don't have the actual costs that you paid for the cards you'll have to come up with a good-faith estimate for what you paid for them.  That will require figuring out what the amount that you paid for an average card was and maybe for some specific cards.  Just keep all records of what you do in order to come up with the estimate in order to have on hand in case you are asked about it.

@colby_parker