MonikaK1
Expert Alumni

Get your taxes done using TurboTax

If you are only reselling personal items at a loss, and not enough through an online service to have received an information return such as a Form 1099-K, then they are nondeductible personal losses and you don't need to report them at all.

 

Hobby expenses used to be deductible, just up to hobby income reported, as miscellaneous itemized deductions, which are no longer deductible on Form 1040 under current law. If you live in a state that still allows miscellaneous itemized deductions, such as California, you can still enter them on your Federal return under Deductions and Credits and TurboTax will flow the information through to your state return.

 

See this article for more information regarding establishing intent to make a profit. It isn't necessarily required that you have a profit for 3 of 5 years or else be automatically classified as a hobby. 

 

See here for more information from the IRS on this topic.

 

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