TurboTax 2022 Form 1040 - Enter Form 1099-K for Losses on Personal Use Items
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- เผยแพร่เมื่อ 12 ก.ย. 2024
- How to file your taxes with TurboTax?
In this 4th video, I cover the basics of how to enter the sale of personal use items when you sell those items for a LOSS. The previous video covered how to record GAINS on the sale of personal use property.
Per the IRS guidance (FS-2022-41), gains and losses on personal use items should be reported differently. However, it is reasonable to report the transactions on Form 8949 and Schedule D with the appropriate adjustments.
See the IRS FAQ on Form 1099-K reporting:
www.irs.gov/pu...
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This channel and video is a damn life saver dude
Thank you for this video as well as the previous one for Form 1099-K for Gains. I was unable to get past an error until I watched both videos.
Thanks so much! I was searching for this answer. Explained so well. :)
You're very welcome!
the $600 limit is ridiculous. It screws the middle-class while the rich gets away with many deductions.
Yup!
this is not the same for turbotax Deluxe. Does not generate the 8949 form because it does not ask all the details you mention. Why can't you enter information manually on Schedule 1? what if you did both , 8949 documentation and entries on Schedule 1 ( done manually since turbo tax does not enter it) . someone also mention put something in miscellaneous section as well
I am using TurboTax Deluxe. I have reported an eBay 1099-K. And I can get the whole 1099-K info to appear on the schedule 1 without entering anything on a Form 1849.
TurboTax picks up the document I entered as my 1099-K from eBay. On the form there is a space called “1099-K Reconciliation.” On line 1, I entered the “gross amount of payment..” $1450." On line 2 “Less: Adjustments: enter on line 2.b." Payments for personal property sold at a loss. I check the box after this line and enter the $1450. that was entered on eBay’s 1099-K. The TurboTax form computes, on line 3, the “Net amount of payment card/third pay network transactions” as -0- - as if should.TurboTax automaticlly carries these figures forward to Schedule 1 and enters on line 8.z the following:
Form(s) 1099-K Personal Items Sold at a loss $1450.
and immediately under this entry, it enters the following:
Form(s) 1099-K Personal Items Sold at a loss ($1450.)
It crams both these lines, one after another, right below the words, on line z," Other income. List type and amount."
and computes the total on line 8.z as “ 0. ”
This all happens without getting form 1849 involved at all. In fact it won’t let me get Form 1849 involved.
I am using TurboTax Deluxe. I have reported an eBay 1099-K. And I can get the whole 1099-K info to appear on the schedule 1 without entering anything on a 1849.
TurboTax picks up the document I entered as my 1099-K from eBay. On the form there is a space called “1099-K Reconciliation.” On line 1, I entered the “gross amount of payment..” as, say, $1450. On line 2 “Less: Adjustments: enter on line 2.b. Payments for personal property sold at a loss. I check the box after this line and enter the $1450. that was entered on eBay’s 1099-K. The TurboTax form computes, on line 3, the “Net amount of payment card/third pay network transactions” as -0- - as if should.TurboTax carries these figures forward to Schedule 1 and enters on line 8.z the following:
Form(s) 1099-K Personal Items Sold at a loss $1450.
and immediately under this entry, it enters the following:
Form(s) 1099-K Personal Items Sold at a loss ($1450.)
It crams both these lines, one after another, right below the Form’s words, on line z, Other income. List type and amount.
and computes the total on line 8.z as “ 0. ”
This all happens without getting form 1849 involved at all. In fact it won’t let me get Form 1849 involved.
Thank you for this video and your time. How do you handle things if the item was refunded or returned?
how do I do this on turbotax deluxe....I believe your tutorial only works for turbotax premier and higher
what if i sold over 250 items on ebay, do i have to give a description of every item? the 1099K also breaks it down on how much I sold each month so not sure how that affects entry into turbotax
I am in the same situation, any type of advise if you have gotten any, or if anyone else knows would help immensely! Also some of the items were sold as lots were in those lots some of these thing I have receipts for, some I do not and some I have had for years...so I am pretty lost. Thanks!
I am using TurboTax Deluxe (see my reply to e stanton above).
I sold 40 items on eBay. I received from eBay two documents:
1. the 1099-K
2. An expansion of the info used to create the 1099K. It included a listing of all the items I sold on eBay and the amounts I collected for each - it also included sales taxes involved.
As indicated above, I never used a Form 1849. I just entered on the TurboTax 1099-K the gross amount I collected and the amount lost (the same as the amount collected). It then enters those figures on Schedule 1 and computes the net amount gained as -0-.
So I never had to list the items, indicate the number of items or what the items were even in a general sense, or show any individual dollar amounts. This ended up pretty much, by default, making entries the way the IRS in their FAQs, suggest.
At 8:56, I think at the bottom u meant to say he received a form 1099k for reporting the 900 gross transaction amount correct? 900 instead of 1900
what about ebay seller fees and such?????? do i enter that into the cost??? lots of ppl having issues with this.
Thank you!
You're welcome!
Great video but how do you report a 1099k personal item loss but for a bunch of items? You need a sold date on schedule D and can’t use various?
thanks a ton
Glad to help!
Do I need to have receipts to prove what I paid .I don’t have my receipts
I sold items on goat where I had gains and loses and I’m confused on how do I account for the fees associated with PayPal and Goat. My 1099-k only show the income I that was paid out after both took their fees. How should I report this
Please help! 🙏 how do I report sales of multiple personal items at a loss? When I go to the second part to include the items sold it keeps telling me to review. Can I only report 1 item?
This is confusing. Say I sold a total of $5000 of used items that I know I sold at a loss. I found my receipts that prove the loss for some of the items, but not all of the items. Do I report the 24z adjustment for the amount I can PROVE sold at a loss that I have receipts for? Or do I just report the entire $5000 at a loss? If I get audited and can't prove portions of the total wasn't sold at a loss since I don't have the receipts, what happens then?
You’d report 5000 as a loss
In the case of an audit, When there’s no recipts to prove certain items were sold at a loss, the IRS sees you as guilty until
Proven innocent so basically more than likely they’re gonna make you pay tax on the amount you couldn’t prove due to lack of recipts
It sucks but I’m in the same boat. First year filing the 1099k and just gonna have to do the best I can and pray I don’t get audited
Also check out Noel lorenzanas channel to find his videos on the 1099k and confusion surrounding it. Very clear videos from him
I have the Turbotax Premier 2022...I entered the 1099-K form received from eBay but can't see where to actually put the loss of the sales. Smart check keeps on failing with an error message: personal sale should not be larger than the amount reported in box 1
Did you ever figure this out?