Not all eBay sales are taxable. If you are selling them for less than what you paid, there's no gain to report nor is there a loss. The IRS won't let you deduct losses on personal items. Also, you should always have detailed records for items you are deducting.
So, in your case, as long as you haven't made sales over $25 million in the prior 3 years, you do not have to track inventory values. You can just record the cost of the items you sold for a profit as cost of sales. When you are reporting your 1099-K gross proceeds, you should back out the proceeds from the net $0 or net loss sales.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
