Akilah sold her hot tub that she originally purchased for $8,500 to her neighbor, Jamal, for $5,000. Jamal paid her using a payment app. Even though not required to do so, the app sent Akilah a Form 1099-K reporting the $5,000 payment. How will Akilah's tax preparer need to report this payment? The tax preparer does not need to report this transaction because losses on the sale of personal-use property are not reportable on the tax return. The tax preparer will use the Merchant Payments input screen to input the Form 1099-K. The income will be reported to Schedule D/Form 8949. The basis will be $8,500 and the proceeds will be $5,000, generating a loss of $3,500. An adjustment will