After researching the subject, this is what I can up with as a plan to report the 1099-K gross amount. In my case a portion of the gross amount is taxable.
If you are a non-business casual eBay seller, receive a 1099-K for the sale of a personal item sold at a loss and have proof of the purchase then the sale amount is not taxable. If you do not have proof of purchase, a reasonable estimate may be acceptable to the IRS.
The 1099-K gross amount is entered on Schedule 1, Part I, Line 8z as “Other Income” along with an explanation such as “Income Reported From 1099-K”.
Use IRS Form 8949 to claim the sale as a non-deductible loss using Code L. The total proceeds/cost amount is also entered on Schedule D as a non-deductible loss. Refer to YouTube video link below for additional details relative to completing F8949/Schedule D entries. The video author, Jason Knott, is a U.S. Tax Advisor, Tax Attorney and CPA.
https://www.youtube.com/watch?v=O_mz6Lk0alg&t=0s&ab_channel=JasonD.Knott
The non-deductible “Amount of Adjustment” from F8949/Schedule D is entered on Schedule 1, Part II, Line 24z as “Other Adjustments” along with an explanation such as “1099-K Personal Item Sale Reported as a Non-Deductible Loss on 8949”.
The “Other Adjustments” amount will be subtracted from the “Other Income” amount; a non-zero difference is taxable.
