What if I got a 1099-K showing the sale of a personal item?
If you had a gain
Menu Path: Income > Common Income > Investments and Savings (1099-INT/DIV/B/DA)
If you sold your personal item for more than you paid for it, add that gain on the Stock or Investment Sale Information screen by choosing Other then Personal Item Sold for a Gain.
If you had a loss
Menu Path: Income > Business / Rental Income > 1099-K Income
If you sold your personal item for less than you paid for it, you can't deduct this loss. Enter the proceeds from the sale on the Where to Enter Your 1099-K screen. Entering the money you got from the sale shouldn't affect your tax due - the IRS just asks that we show the amount on Schedule 1.
For example, say you bought a couch for $1,000 and sold it to someone (who paid you using Venmo) for $700, which was reported on your Form 1099-K. You would enter $700 on the Where to Enter Your 1099-K screen.
If you had a gain and a loss
If you sold some personal items for a gain and others for a loss, you should enter the items sold for a gain on the Stock or Investment Sale Information screen.
Separately, you should enter the items sold at a loss on the Where to Enter Your 1099-K screen.
Any losses from the sale of personal items can't be used to offset gains from the sale of other personal items.
Menu Path: Income > Common Income > Investments and Savings (1099-INT/DIV/B/DA)
If you sold your personal item for more than you paid for it, add that gain on the Stock or Investment Sale Information screen by choosing Other then Personal Item Sold for a Gain.
If you had a loss
Menu Path: Income > Business / Rental Income > 1099-K Income
If you sold your personal item for less than you paid for it, you can't deduct this loss. Enter the proceeds from the sale on the Where to Enter Your 1099-K screen. Entering the money you got from the sale shouldn't affect your tax due - the IRS just asks that we show the amount on Schedule 1.
For example, say you bought a couch for $1,000 and sold it to someone (who paid you using Venmo) for $700, which was reported on your Form 1099-K. You would enter $700 on the Where to Enter Your 1099-K screen.
If you had a gain and a loss
If you sold some personal items for a gain and others for a loss, you should enter the items sold for a gain on the Stock or Investment Sale Information screen.
Separately, you should enter the items sold at a loss on the Where to Enter Your 1099-K screen.
Any losses from the sale of personal items can't be used to offset gains from the sale of other personal items.
