The sale of personal property is reported as a sale of a capital item. The IRS will tax you if there is a gain. The IRS will disallow a loss on the sale of personal property.
See IRS Publication 544 Sale and Other Dispositions of Assets or this TurboTax Best Answer.
Personal-use property.
Loss from the sale or exchange of property held for personal use is not deductible.
If you bought item A ten years ago for $100 and sold it in 2020 for $500, there is a taxable capital gain, reported on Schedule D.
If you bought item B ten years ago for $100 and sold it in 2020 for $50, there is a taxable loss and no taxable event.
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