selling personal items but got wrong form?

[cathypaul14]

I sold some personal items at a loss and they sent me a 1099-NEC. I can't figure out how to show the basis for the items for a 1099-NEC, but could if the form was a 1099-K. Did they send me the wrong form or am I missing something under the 1099-NEC? this is the only similar transaction for the year 2022, and it was only $762.

[AliciaP1 · Accepted solution]

Yes, if it is representing the money you received for tangible items sold it is reported on the wrong form.  In fact, unless it was paid for through a third-party network (credit card processor) it should not have been reported at all.  Since you cannot deduct a loss for the sale of a personal item, you do not need to report the income either.

If you provided services as well as items, the services portion of the payment is what should be reported on the 1099-NEC and needs to be reported as self-employment income.  If there were no services included for the payment, you need to contact the payer and have them void the 1099-NEC.