It would get reported to the IRS as revenue. Since you're selling that item for less than you paid for it, and assuming that you didn't depreciate it as a busi

It would get reported to the IRS as revenue. Since you're selling that item for less than you paid for it, and assuming that you didn't depreciate it as a business asset, you have a net loss, and shouldn't have to pay tax. The question is going to be, how does the IRS handle reports like this?