1099-k help please!

Forum|Forum|1 year ago
February 6, 2025
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I received a 1099-k for 30 pairs of shoes I sold from my old collection as I am downsizing. The 1099-k was for 6,700 BUT i actually lost 300 for the year. My COGS was 6,300. I would think i shouldn't have to pay ANY TAX since my NET was a loss however I entered this 2 different ways in turbo (as personal items) then as self employed deducting the COGS, home office etc.. BOTH WAYS, it is taxing me MORE then before I entered the 1099-K at all. How do I truly ZERO out my 1099-k so I'M not paying tax on any of it?, when I did "personal sales at loss and gain" it taxed my gains but since you Can't deduct losses for personal items sold in the end i was paying tax even though I took a loss. That seems wrong. PLEASE HELP! Ice spent hours on this. THANKS!!!!

TurboTax Deluxe Online

Best answer by RobertB4444

Can anyone answer my last follow up question here please? Thanks!

Yes, you have to pay tax even though you lost money.

Each sneaker sale is a separate sale.

The ones where you made a profit you have to pay tax on.

You can't deduct the ones where you made a loss.

Entering this as a personal sale means you owe taxes.

@JJ161

MindyB

Yes, you are correct, you should not be paying any tax.

First, I recommend deleting all entries related to the 1099-K you have already entered. ‌Check 1. 1099-K input, 2. Self-employment income & expenses and 3. Investments and Savings for any data related to the 1099-K and delete.

Next, follow these steps in TurboTax Online:

Within your tax return go to the magnifying glass icon on the top right, type 1099-K and select the Jump to 1099-K link in the search results
Choose Add a 1099-K
The next screen will ask "Which type of income your 1099-K is for?" choose Personal item sales, then Continue
Enter the information from your 1099-K
After you choose continue, the next screen will show "Personal Item Sales". Here is where you choose "All items were sold at a loss or had no gain"

JJ161Author

Thanks Mindy! So even though 10 of the 30 items were sold at a "gain", I'm still ok to just select "all items sold at a loss" and move on?

Also, I read a bunch of places that you can get into IRS trouble if you report it as a "summary" netting in your losses and gains? Isn't that what i would be doing here? Do I still have to enter each of the 30 items separately showing what i paid and sold each for? That is what made me pay tax before when i did that. Sorry for the extra questions and I really appreciate your help, advise and time! Thx!

JamesG1

Consider this example where the gross sales reported on the IRS form 1099-K is $900 and only these two sales transactions are involved. Report the entire $900 on the IRS form 1099-K.

Selling Cost

Price Basis

T 1 $500 $1,000 Capital loss on personal item = $0 gain/loss

T 2 $400 $300 Capital gain on personal item = $100 gain

$900 $1,300

At the screen Personal Item Sales, under I sold some items at a loss or had no gain, report $500.