Regarding eBay 1099-K

[MindyB]

@jxwilliams58291 Since you did not receive a 1099-K and you sold your personal items at a loss, you do not need to report this on your taxes at all.

The IRS does not allow you to deduct losses on personal items (like selling old clothes for less than you paid). Because there is no gain to tax and no loss allowable, the net impact on your return is zero.

[jc-caruso]

Thank you Mindy. Yes I see that there should be no net effect on my taxes, what bothers me is the 1099K that the IRS is looking at thinking that I failed to report income from an eBay business. So I think it does have to be included in my tax return although the net affect needs to be zero. Thanks! 

[MindyB]

Hi, @jc-caruso, since your situation is different than the other poster (they did not receive a 1099-K, and you did), I concur with your conclusion- add the 1099-K.  But, choose the option "I sold some items at a loss or had no gain or All items were sold at a loss or had no gain" and enter the total amount. 

I verified that the option appears on the screen following the 1099-K input by selecting "Personal item sales" when first adding the 1099-K and being asked which type of income your 1099-K is for.

[jc-caruso]

Ahhhh ok, awesome, thank you Mindy. I guess I didn’t read carefully enough. Thanks!