Tax question

[Harv123]

This year ebay will send me a 1099K, since I have sold over $600. This is a part time hobby, not a business. Every item that I have sold was purchased by my parents in the 1960s-1970's (no receipts found.) I inherited their items in 1995, when they passed away. The items have been stored in my garage for about 25 years.

For example, they bought a crystal statue for $1000 in 1960. I inherited it in 1995, value unknown. Last month, I sold it for $400 on ebay. How do I show on my taxes to explain to IRS that I did not make $400 profit, even though it will be listed as part of the 1099K that I will receive from ebay for 2022?

[RSUMan]

When you inherited the items in 1995, the basis in those assets were "stepped up" to the fair market value at the date of death.

If the items are "collectibles" (particular crystal items and figurines, for example), you can report the sales on Schedule D and have a reasonable estimate of your basis to offset the $400 received.

If the items you are selling are not collectibles and you are engaged in a hobby, for tax year 2022, you will not be able to deduct the "cost of the goods sold."