Selling of Sports card Collection and Receiving 1099-K

[dmonttopps]

I started selling off my sports card collection that I have been collecting for the last 35 years. I have been selling them on Ebay. I received a 1099-K form from Ebay with all of my sales for the year. I am not selling for a business but just moving on from the hobby. Do I need to report this at a Hobby income, miscellaneous income or not report as income at all. Some of the cards have increased in value from the time i have purchase them but most have decreased in value. If I have to report the income, would the cards that loss value offset the cards that increased value?

Thanks!

[AliciaP1 · Accepted solution]

You should report this as Other Miscellaneous Income.  If your Form 1099-K is for personal items sold, similar to having a garage sale, and you were not in a trade or business, the IRS allows you to also deduct the related expenses for the sale up to the amount of the sale for each purchase transaction.

In TurboTax Online you can follow these steps:

1. From the left menu, go to Federal and select the first tab, Wages & Income
2. Add more income by scrolling down to the last option, Less Common Income, and Show more
3. Scroll down to the last option, Miscellaneous Income, 1099-A, 1099-C and Start
4. Choose the last option, Other reportable income and Start and Yes
5. Enter the applicable description and amount and Continue
   • First, enter Form 1099-K as received. It is essential that the full amount be entered.
     • For a description, include Form 1099-K and Personal Property Sales
   • Next, enter an adjustment to reflect the cost of these items as an offsetting, negative amount up to the amount of the income.
     • For the cost description, include Form 1099-K and Cost of Personal Property 
     • In other words, if the goods cost you $100 and Form 1099-K was for $10 in sales, the maximum cost allowable would be $10.

[dmonttopps]

Thanks for the clarification!

I am not able to enter any 1099-K info under Miscellaneous Income. Just gives me a description and amount option. What am I missing?

[dmonttopps]

I understand now. Two seperate entries! Thanks!

[thatdoodmatt]

@AliciaP1 I followed this method on my federal and it looks like it took. It then transferred over to my state taxes and am curious if there is a way to write this off in a similar suite like done on federal. The income part transferred to state but I can’t find a place to add a negative amount. I attempted to add a negative number but it was rejected by the state. The state won’t allow a negative number on the other income section. 

[AmyC]

Some states start with the federal AGI which means it would already be subtracted. Take a look at your state tax form and see if it begins with the federal AGI.

To see your forms:

• In desktop, switch to Forms Mode. 
• For online, see How do I preview my TurboTax Online return before filing?

[tctrex]

This was helpful - - if I enter the gross amount and the offsetting cost amount as 2 different lines here then I assume I do not enter the gross amount again in the 1099-K section of the "inquiry".  Because that is where I initially loaded the gross sales amount - - I went back and deleted that entry and want to be sure that this is correct.  Please advise.  Thanks!

[DianeW777]

Yes, that is correct.  Do not enter the income under Less Common Income and again in the 1099-K section.

As indicated, if you sold personal items at a loss you are limited to the sales price for your cost of items. Any items sold at a gain should be separately reported.  

If any items were sold at a gain and have been held or owned by you for more than one year then you would want to report those items as an investment sale.  This will provide capital gain treatment and lower tax liability.

To enter your sale in TurboTax, follow these steps. Click this link for more information. Where do I enter Investment Sales?

1. Open or continue your return.
2. Navigate to the investment sales section:
   • TurboTax Online/Mobile: Go to investment sales. If using this application, make sure it is open
   • TurboTax Desktop: Search for investment sales and then select the Jump to link. 
     • Or Personal Tab > Continue > I'll choose what I work on > Scroll to Investment Income > Select Stocks, Cryptocurrency, Mutual Funds, Bonds, Other
3. Answer Yes to the question Did you sell any of these investments in 2024? (or Okay! to Time to kickoff your investments!).
   • If you land on  the Investment sales summary or Your investments and savings screen, select Add More Sales or Add investments.

@tctrex