@Oscar222 wrote:
As you suggested, I added the income on Schedule C and also did listed expenses (postage, eBay fees, PayPal fees, etc.) Where do I account for the original cost of the items? Since this is like a garage sale, the items I sold are various used things from around my house. I did purchase them at some point in the past but have used them so the value is far less than what I purchased them for. Presumably I should not end up with a profit since I purchased them to begin with.
Thanks in advance for your help!
@LenaH
I'm curious about this as well because this is not inventory so it's not really cost of goods sold. These are capital sales that would be reported on schedule D, not schedule C, and as each item is sold for less than the purchase price, this will show a large deductible capital loss. Since the schedule C will show expenses and no income, and schedule D will show a loss as well, this could create a large deduction against other income. But, losses on sales of personal property are not allowed, and this is pretty clearly not an ongoing trade or business if the taxpayer is not acquiring new inventory.
