First question - depreciation recapture would only apply if you had sold the computer to your son or another party. It appears you have taken the computer "out of service" in connection with your ebay business, and thus, you would no longer depreciate this asset. If you should sell the computer, then you would have to account for the depreciation you took. TurboTax will calculate what, if any, depreciation needs to be recaptured and the applicable tax rate. If the computer were sold at a loss, then there would be no depreciation to recapture. Keep the receipt for the computer because you will need that to determine the adjusted cost basis for the computer should you decide to sell the computer.
Second question - yes, enter the PayPal transactions as a separate item.
Third question - if you do not know your cost, and cannot reasonably estimate the cost of the goods you sold, then you will have nothing to enter in that COGS category. Therefore, you may have to leave that COGS category blank. Unfortunately, that will increase your income subject to tax; however, perhaps the amount involved is not high enough to warrant the additional work/research you would have to do to ascertain the cost of the items you sold through ebay and PayPal. However, going forward you will probably keep such records so this will no longer be an issue to address.
Deducting your business expenses, such as shipping fees, packaging tape, and office supplies all appear reasonable. Moreover, they are the type of expenses generally associated with the business of the type you have described.
@jjzonka
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