Hi TheMitchman, thanks for posting the question.
Below is from Opus17 TurboTax Community posting:
Quote
The difference between a hobby and a business depends on your intent. Here is the 9 factor test the IRS uses.
https://www.irs.gov/newsroom/earning-side-income-is-it-a-hobby-or-a-business
Basically, if it is a regular and ongoing effort with a profit motive, it is a business, even if it is small
Unquote
Therefore, if you report on Schedule C, Profit or Loss from Business, your cost basis is likely to be the fair market value at the time of sale since it is an used items. Fair market value at the time of sale to an unrelated 3rd party in an open sale platform is a good indication of your adjusted cost basis. (not the amount paid by you when the item is new)
Hope the above helps.
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