1099-K items

[Catherine]

Client sold off a bunch of stuff that he doesn't use any more on ebay, and got a 1099-K. He actually had purchase prices, and purchase dates on all the items! However, there are a slew of the #$%^ things, and the total gain for the entire year was a whopping couple hundred bucks. 

Is it kosher to bundle these by month, so sale totals match the 1099-K monthly totals, for only six entries (he didn't sell in every month), or do I really need to list every bleeping one of these things (several dozen) individually?

[Lee B]

IRS Guidance says to report the gains and losses separately, which is nasty because you can't deduct the loss from the sales of personal items.

 

[Catherine]

6 minutes ago, Lee B said:

I think I would just plug in the annual totals

My first thought, yes - but doesn't that open us up to nastygrams from the IRS because it doesn't match 1099-K monthly totals? The guidance was that best practice is to list all the bleepity-bleep individual sales as individual sales.

[Lee B]

1 minute ago, Catherine said:

My first thought, yes - but doesn't that open us up to nastygrams from the IRS because it doesn't match 1099-K monthly totals? The guidance was that best practice is to list all the bleepity-bleep individual sales as individual sales.

See my revised post, which means that you can't net gains and losses

[Catherine]

13 minutes ago, Lee B said:

See my revised post, which means that you can't net gains and losses

Thank you.

[BrewOne]

Any reason not to treat it as a hobby?  Enter the 1099-K amount and then enter a negative amount for cost of goods sold.

[Lion EA]

If there are bunches, or bleepity-bleep bunches, then do a profit for each month and a loss for each month. In your case of 6 months, you'd have no more than 12 lines, fewer if not all months had both gains and losses. It's almost April, and I do less typing as it gets closer to the deadline. Not right, but it's practical. The more lines I have to type, the longer it takes me to proofread. Don't tell the IRS. Or, my clients!

[BrewOne]

Okay, if it's not a hobby I guess you can't lump it all together because you can't take any losses, you can only zero out personal items sold at a loss.  You need to report the total amount from the Schedule K-1 but you should only pay taxes on the profitable items.  The IRS says if you get a 1099-K for a personal item you sold at a loss that you can put it on Schedule 1 (8z) and then put a negative amount on Schedule 1 (24z) to zero it out.

This is going to be a big problem going forward and I would look at Schedule 1 before I tried to put everything on the 8949.

[BulldogTom]

Along the same lines but slightly different, my client has signed up for Acorns (that app that lets you round up your purchases and invest the change).  And they have like 25 trades of fractional shares of 3 different mutual funds both short and long term and wash sales that don't even add up to $0.50.   What a pain for a $2 net loss on the Schedule D.   Cost them more for my services than they will ever realize from the investments.

Tom
Longview, TX

[Slippery Pencil]

I doubt monthly totals matter.