The $7,000 sales proceeds are reported as ordinary income in the current year. You reported the cost of the items in 2017 and 2018.
IRS Publication 544 states:
Property deducted under the de minimis safe harbor for tangible property.
If you deducted the costs of a property under the de minimis safe harbor for tangible property, then upon its sale or disposition, this property is not treated as a capital asset under section 1221. Generally, any gain on the disposition of this property is treated as ordinary income....
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