Vanessa A
Expert Alumni

After you file

No.  If you are choosing to treat this as a hobby, you cannot deduct any associated expenses.  

 

However, since you are simply selling personal expenses, the correct way to do this is to enter them as sales of investments.  When you do this you can deduct what you paid for them, along with the expenses and only be charged on the net profit.  Also, since you say you bought these years ago the gain on the sale is taxed at Capital Gains rate instead of ordinary income rates as long as you owned them more than a year. 

 

If you would choose to do this as a business, then you would need to pay SE taxes on any profits you earn, however, expenses are deductible.

 

The decision is mostly about intent.  If you plan to start collecting and selling, then it could be either a hobby or a business.  However, simply selling your items you no longer need are reported as sales of investments. 

 

How do I enter a 1099-K for personal item sales?

 

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