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It depends on how the gift cards were received and/or if you are in the business of selling gift cards. 

1. If they were a gift to you and you decided to sell them you would report it as a sale on your tax return. 
   1. The cost to you would be the same cost paid by the giver (face amount of the gift card).
   2. The selling price would be what you sold them for. 
      • If selling price is greater than your cost then you will have a taxable gain.
      • If it is a loss there is nothing to report because a personal loss is not allowed on your tax return.
2. If you purchased the cards for the purpose of selling them, then it could be a hobby or a business. See the definitions below.

Key elements:

1. A hobby requires you to report the income you received and under the current tax law, Tax Cuts and Jobs Act (TCJA), no expenses are allowed to be used to reduce the money collected even if you itemize deductions.
2. A business allows you to deduct the costs necessary to obtain the income.  The law explains that 'you must be engaged in the activity to produce a profit'.  The test under IRS tax law is that you must show a profit three out of every five consecutive years to be considered a business. How do I report income from self-employment?

Hobby: Other Miscellaneous Income:

1. Go to the Wages and Income  section of TurboTax
2. Scroll to  Less Common Income > Select  Miscellaneous Income, 1099-A, 1099-C
3. Select Hobby Income and Expense > Enter the income

Note: You can decide if it was a gift to you, a hobby or business income.  This IRS link will help you: Business or Hobby?

@jc0011