If you generally have a net profit from sales, or can establish that you meet IRS guidelines for operating a business, report the income and related expenses on Schedule C.
If you have occasional sales of personal items at a loss, you can choose not to report them on your return at all. If you sell the items through an online platform or other entity that issues you a Form 1099-K, keep good records in case of an audit.
If you regularly sell items as a hobby, report the Form 1099-K. You can't deduct the expenses under current law, except on some state returns, such as California, whose laws didn't change on this issue when the Federal law did.
See this TurboTax tips article and this IRS webpage for more information.
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