Where you report your transactions depends on the intent of the sales.
- If you are NOT in the business of reselling used clothes, these transactions would be treated as capital transactions as was mentioned on the other thread. If you made a profit, you'd follow the steps outlined in the other thread to report the income. If you generated losses, the losses aren't deductible and you don't need to report them. This would be the case if you're infrequently selling off your own personal items.
- If you've created a business of reselling used clothes for a profit, these transactions would be treated as business sales and reported on a Schedule C as Mindy outlined above.
