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February 7, 2025
Question

Consignment

  • February 7, 2025
  • 1 reply
  • 0 views

Sold a travel trailer on consignment through a RV business.  The same business we had bought trailer the year before. We sold trailer at a loss.  Have since received a 1099 NEC from them and the total amount ($49,000) is entered in Box 1.  Not returning calls for an amended 1099.  

We believe we should not have received any 1099, let alone a 1099 NEC.

What recourse do we have ?

    1 reply

    AmyC
    Employee
    February 7, 2025

    We get your taxes done right regardless of them. You should have received a 1099 MISC for the sale, not the NEC. Since they won't be correcting let's work with what you have.  Your income is not taxable for a loss on sale of personal item. Follow these steps:

    Enter the NEC

    1. Go ahead and enter the 1099-NEC in the income section. 
    2. As you go through, the program asks Does one of these uncommon situations apply?
    3. Select this is not money earned as employee or self-employed individual, continue

    Remove the income

    1. go to the federal income section
    2. scroll to the bottom
    3. Miscellaneous Income, 1099-A, 1099-C, Start
    4. Scroll to the bottom
    5. Other reportable income, Start
    6. Other taxable income?
    7. Select YES
    8. Description  -NEC received for sale of personal RV sold at a loss
    9. Amount, enter 1099NEC as a negative amount, -49,000
    10. Continue

     

     

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