If you do not sell, or resell, items such as this as a business then it is a capital asset in your hands and the transaction is the sale of property held for personal use.
As such, you cannot deduct a loss and can either report the sale as the sale of a capital asset (much in the same way as you would report the sale of a security, such as a stock, bond, or mutual fund) or not report it at all. Either way, you cannot recognize a capital loss on the sale of property held for personal use.
