If you are undertaking this activity with a profit motive, then you can report the money you received as sales associated with a business. In this case, you would need to set up a business in the TurboTax "Self-Employed" product. You will be able to enter the cost of your items purchased as "cost of goods sold", so you will not be taxed on the full amount of money you received from the items you sold. If you sustain a loss, it will be deductible on your tax return.
If you do not have a profit motive, then you must report the income as "Other Income" in the "Income and Expenses" section, then "Less Common Income" then "Miscellaneous Income" and then "Hobby Income and Expenses."
Please keep in mind that if your report the activity as a business and deduct losses from it, you cannot do this for more than a few years or the IRS may reclassify the activity as a hobby and disallow the losses you claimed in prior years.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
