I sold old personal items on marketplace for less than I paid. I got no 1099K as I didn't meet threshold. Do I need to enter anything on my taxes? If yes, where?

Forum|Forum|1 year ago
March 1, 2025
1 reply
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I am not buying and selling as a business to attempt to make profit. Just cleaning out my closet.

Best answer by MindyB

Yes, that makes sense. I am definitely not using this as 'gig income'. What gets confusing is that the 'gig income' section references being paid by an online marketplace, which I am.

So what if I meet the threshold next year (because they will be lower) and receive a 1099-k. Will I still not have to enter anything because my personal records show no profit? Or because the IRS would also receive the 1099-k I would need to enter it and zero it out somehow?

Correct, you are being paid by a marketplace, but again it is not a "gig", so you do not need to read further into the rules regarding gigs. If it turned out you made a profit on these personal items that you were just trying to clear out, not make a part-time job out of, that income would go on Schedule D, where investments are reported.

Next year, if you receive a 1099-K, you will need to report it. But if the items are sold at a loss again, there is a box for you to check in TurboTax to indicate that the items were personal items sold at a loss, and there will be no tax computed or Schedule C.

DianeW777

No, you don't need to enter anything. As long as you know there was a loss on all of the items sold there is nothing to report. Keep good records for all sales since a 1099-K can be issued depending on the overall amount of sales. These records will help in the future.

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vmmiller77Author

Hi Diane, Thank you very much for your answer. I've spent days combing through official IRS documents but have been unable to find this answer. The only official guidance references those that did receive a 1099-k.

Thank you again!