DawnC
Expert Alumni

Get your taxes done using TurboTax

You cannot deduct your expenses for a hobby, you would need to use Schedule C to do that.  But if you are not doing the activity for profit, the income should not go on Schedule C.   If these are personal items that you did not make a gain on, you are not required to report them.  In this case, just keep detailed records in case the IRS questions the unreported amounts from the 1099-K later.  

 

Most of the time, personally-owned stuff like cars, appliances, clothing, furniture, and other household items decrease in value after the initial purchase. If you later sell them, it's almost always for less than what you paid, so there's no gain to report. There's also no loss. The IRS won't let you deduct losses on personal items.

 

Here's an example: you purchased a vintage nut grinder for $5 in 1972 and recently sold it on eBay for $75. You'd have to report the $70 profit as an investment sale.  If you have gains on personal items, report the income and basis amounts under Investment Sales.

 

Related Information:

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"