I received a 1099-NEC from a local college for a piano I sold to its music school. I bought the piano 10 years ago for $2,700 and sold it to the college for $2,400 last year. Do I have to report the $2,400 on the 1099 NEC as income or does Turbo Tax allow me to account for "depreciation and/or loss" of the asset sale? If so, how do I go about doing that?
You sold this piano for less than you paid for it. You have made a loss on personal items. This loss on personal items is not deductible and is not reported on your tax return.
The college was wrong in issuing you with a form 1099-NEC as this form is used to report non-employee compensation paid to you, which is obviously not the case. I would write to the college asking them to withdraw the form. If they refuse, you have a proof that you asked. I advise not to report this form 1099-NEC on your tax return. Just keep it in your tax records along with any proof that it was for the sale of the old piano.
Please read this TurboTax Help topic for more information.
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