It's important to determine which activity you are engaged in. You either have a sale of investment or you have income from a business but not both for the sale of the same items. If you believe you have a business then all of the income from the sales go on Schedule C, self employment.
The tax law would not uphold a capital gain transaction of investment property with expenses on a Schedule C for the same items. You are either conducting self employment or you are selling investment property or possibly a hobby. It sounds more like you think you are considered self employed. Just be sure to enter the income on Schedule C and not as investment income.
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