I've been look at some other questions of similar nature from last year, but have a particular question. I sold auctions of 15k on ebay in 2021. These are all personal items acquired and used over many years by myself and my wife. I did a spreadsheet for all the auctions and came out that we spent about 21.5 k for the items. I expect to get a 1099k from ebay in a week or so. I was planning on following this method of reporting this... For reporting personal property sold and also including the offsetting cost, follow these steps:From the left menu, go to Federal and select the first tab, Wages & Income.Add more income by scrolling down to the last option, Less Common Income, and Show more.Scroll down to the last option, Miscellaneous Income, 1099-A, 1099-C and Start.Choose the last option, Other reportable income and Start and Yes.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 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. Of the 81 auctions, 25 were sold for more than what we paid, and the remaining 56 were sold at less than what we paid. So my question, should I lump them all together and say my offsetting personal items sold equals my 1099k or should I somehow account for the 25 auctions separately where we actually sold them at a higher price? Maybe two offsetting deductions: 1 where the 56 auctions equal the equivalent amount of the 1099k and one where it equals the remaining amount minus what I "profited" on those items?

Question

1099k Ebay sales - Personal items

Forum|Forum|4 years ago
January 26, 2022
1 reply
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I've been look at some other questions of similar nature from last year, but have a particular question.

I sold auctions of 15k on ebay in 2021. These are all personal items acquired and used over many years by myself and my wife. I did a spreadsheet for all the auctions and came out that we spent about 21.5 k for the items. I expect to get a 1099k from ebay in a week or so.

I was planning on following this method of reporting this...

For reporting personal property sold and also including the offsetting cost, follow these steps:

From the left menu, go to Federal and select the first tab, Wages & Income.
Add more income by scrolling down to the last option, Less Common Income, and Show more.
Scroll down to the last option, Miscellaneous Income, 1099-A, 1099-C and Start.
Choose the last option, Other reportable income and Start and Yes.
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 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.

Of the 81 auctions, 25 were sold for more than what we paid, and the remaining 56 were sold at less than what we paid.

So my question, should I lump them all together and say my offsetting personal items sold equals my 1099k or should I somehow account for the 25 auctions separately where we actually sold them at a higher price?

Maybe two offsetting deductions: 1 where the 56 auctions equal the equivalent amount of the 1099k and one where it equals the remaining amount minus what I "profited" on those items?

E

ErnieS0

The second option is better. You cannot claim a loss on the sale of a personal item, so you would not be able to net your total sales. You can bring your profit down to $0 for those items that you sold at a loss, but you can't go below $0.

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