It depends. For example, if you sold any personal use items at a loss, then your cost and sales price should be equal. A loss on personal use items, such as the shoes you mentioned, is not allowed to be used to reduce other income.
For any items you sold at a gain, the gain is taxable. This should be reported as a sale of personal items under Investment Sales.
- Open or continue your return.
- Navigate to the investment sales section:
- TurboTax Online/Mobile: Go to investment sales. If using this application, make sure it is open
- TurboTax Desktop: Search for investment sales and then select the Jump to link.
- Or Personal Tab > Continue > I'll choose what I work on > Scroll to Investment Income > Select Stocks, Cryptocurrency, Mutual Funds, Bonds, Other
- Answer Yes to the question Did you sell any of these investments in 2024? (or Okay! to Time to kickoff your investments!).
- If you land on the Investment sales summary or Your investments and savings screen, select Add More Sales or Add investments.
If you had a sale, that was later returned and the money refunded to the buyer, then keep notes. The sale was cancelled so it didn't actually take place for tax purposes in your situation.
If this later becomes more involved and you consider this a self employment activity carried on to produce a profit, with regular and continued activity, then it would be reported on Schedule C as a business.
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