1099-K - personal goods - how to report on NJ return

[cb85]

Hello

For 1099-K's received for sales of personal goods sold at a loss (through vendors like eBay), how did you report this on the NJ personal return?  There is a line in other income for 1099-K payments, but if I enter a negative amount to offset the income at the bottom, there is an error saying the tax return cannot be e-filed.  I'm not trying to deduct a loss, just offset the income with a negative of the same amount. 

On the federal return, I used the 1099-K worksheet and checked the box at the bottom for sold at a loss.

Thanks in advance for your help.

[rbynaker]

I don't know about NJ specifically.  What happens when you report it on Form 8949 with an "L" adjustment to block the loss?

My NJ go-to is @Skylane so maybe he can help.

[Just-Lisa-Now-]

Im running sales of personal property through Sch D, code L if its a loss.

I know the IRS website says to make the adjustment on Line 24 of Sch 1 (https://www.irs.gov/newsroom/form-1099-k-frequently-asked-questions-general),

but Line 24 didnt work last I checked!

[rbynaker]

---

@Just-Lisa-Now- wrote:

Im running sales of personal property through Sch D, code L if its a loss.

I know the IRS website says to make the adjustment on Line 24 of Sch 1 (https://www.irs.gov/newsroom/form-1099-k-frequently-asked-questions-general),

but Line 24 didnt work last I checked!

---

More of the IRS schizophrenia that Bob mentioned.  The most recent update to the 1040 instructions now say to report it on Sch D/8949 (but you're right, when the 1040 instructions first came out they said to put it on 8z/24z):

https://www.irs.gov/pub/irs-pdf/i1040gi.pdf

Page 86 column 3 "Tip" (2022):

"If you received a Form 1099-K
for a personal item that you
sold at a gain, don’t report this
amount on line 8z, instead report it as
you would report any other capital gain
on Form 8949 and Schedule D."

The IRS has revised these instructions at least twice since they went "final".

Rick

[cb85]

Thanks all!  I'll run it through Schedule D.  This will avoid the NJ tax return error I was getting too.

[Skylane]

If this is a business then Sch C. If just selling personal property for a loss, Id question basis… but it should end up on sch D with no loss allowed… i haven’t dealt with the 1099k worksheet/workflow yet and don’t know how it transfers to NJ. 
edit.. i didnt see your final remark and agree