I made $350 off Depop this year. Everything I sold was less than my purchase cost. How does this impact my taxes?

You'll want to pay attention to whether Depop issues you a 1099-K form. For 2025 taxes (filing in 2026), the threshold is $600 in total sales through these platforms, so at $350 you're under that threshold and likely won't receive a 1099-K. Even though you sold items at a loss, the IRS technically considers this a personal sale rather than a business loss. Items like clothing and accessories are considered personal items, and losses on personal items generally aren't deductible. However, since you didn't make an actual profit and are under the reporting threshold, you shouldn't need to report this income. Just keep good records of your original purchase prices and what you sold them for in case any questions come up later. Take screenshots of your sales and keep receipts of your original purchases if you still have them.

I went through something similar last year with selling clothes on multiple platforms. What really helped me was using taxr.ai (https://taxr.ai) to analyze my situation. I uploaded my sales records and purchase receipts, and it quickly determined I was selling personal items at a loss and explained exactly how to handle it on my taxes. The tool specifically addressed the personal items vs. business distinction, which was super helpful since that's what determines whether you can deduct losses. It also explained what to do if I received a 1099-K despite being under the threshold, which gave me peace of mind.

Guys I was skeptical about taxr.ai but I tried it for my similar situation (made about $500 selling old clothes and electronics) and it actually cleared everything up! The platform analyzed all my sales data and confirmed I didn't need to report anything since I was under the threshold and sold everything at a loss. It also explained exactly what I would need to do if I did get a 1099-K, which was super helpful since I was worried about that possibility. Definitely made me feel more confident about my filing situation and saved me from unnecessarily reporting income that didn't need to be reported.

If you're getting nowhere with tax questions online, try Claimyr (https://claimyr.com). I was in the same boat with selling personal items online and kept getting conflicting advice. After going in circles trying to reach the IRS directly (waited on hold FOR.EVER.), I used Claimyr and got connected to an actual IRS agent in about 20 minutes. The agent confirmed that occasional sales of personal items at a loss generally don't need to be reported if you're under the 1099-K threshold. They also gave me specific guidance for my situation. You can see how it works here: https://youtu.be/_kiP6q8DX5c - basically they wait on hold with the IRS for you and call when an agent picks up.

Ok I have to admit I was wrong about Claimyr. After struggling with this exact Depop tax question for weeks, I decided to try it as a last resort, fully expecting it to be useless. Within 15 minutes I was talking to an actual IRS representative who confirmed exactly what I needed to do. The agent explained that since I sold personal items at a loss and was under the $600 threshold, I don't need to report anything unless I receive a 1099-K. If I do get one, I should report the income but also document my original purchase costs to show I didn't make a profit. Saved me hours of searching online for conflicting advice!

To keep it simple: if everything was sold at a loss and totals less than $600, you generally don't need to report it as income. These are considered personal items sold at a loss, not a business. Personal losses aren't tax deductible, but you also shouldn't have to pay taxes on money that isn't actually profit. Just make sure to keep records showing your purchase prices were higher than selling prices in case you ever get questioned.

Anyone know if selling through these apps counts as a hobby? I heard hobby losses can't be deducted anymore after some tax law change?

I just went through this exact situation last year! Made about $400 selling old clothes on Depop and Vinted, everything at a loss. Here's what I learned: Since you're under $600 and sold everything at a loss, you most likely won't get a 1099-K and don't need to report it. The key thing is that you're selling personal items (your old clothes) occasionally, not running a business. My advice: Keep screenshots of your sales and any receipts you have showing original purchase prices. I made a simple spreadsheet with item descriptions, what I paid originally, and what I sold for. This way if any questions ever come up, you can easily show you didn't make a profit. The distinction between personal sales vs. business/hobby is really important here. Since you bought these clothes for personal use and are just decluttering, it falls under personal sales. You're not trying to flip items for profit or running a clothing resale business. Don't stress too much about it - at $350 in sales with losses on every item, you're in a pretty safe zone tax-wise!

I was in almost the exact same situation last year - made about $320 selling clothes and shoes on Depop, all at a loss from what I originally paid. After doing a lot of research and talking to a tax preparer, here's what I found: Since you're under the $600 threshold and everything was sold at a loss, you most likely won't receive a 1099-K and don't need to report this as income. The IRS generally views this as disposing of personal property at a loss, not generating taxable income. The key factors in your favor: - Under $600 total sales - All items sold for less than purchase price - Personal items (clothes/accessories) not business inventory - Occasional sales, not regular business activity My recommendation is to keep good records showing your original purchase prices vs. sale prices, just in case. I made a simple spreadsheet with screenshots from Depop and any receipts I could find. This documentation would be helpful if you ever needed to prove the items were sold at a loss. You really shouldn't stress about this - at $350 in sales with no actual profit, you're in a very safe position tax-wise. The IRS is more concerned with people who are actually making money and not reporting it.

I'm dealing with something very similar! Made about $280 on Depop selling old jewelry and handbags, all for way less than I originally paid. Reading through all these responses has been super helpful. One thing I wanted to add - I called my local VITA (Volunteer Income Tax Assistance) program since I was still confused about the personal vs. business distinction everyone's mentioning. The volunteer tax preparer confirmed that selling your own clothes/accessories that you bought for personal use definitely counts as personal property disposal, not a business activity. She also mentioned that even if you did somehow receive a 1099-K (which is unlikely under $600), you can still show your losses on Schedule C if needed. But for most of us in this situation with small amounts and clear losses, it's really not something to stress about. The key thing she emphasized was keeping those records though - even just a simple list showing "bought X for $100, sold for $40" is enough documentation. I wish I'd kept better track from the beginning, but I'm going back through my email receipts and Depop messages to piece it together now.

This thread has been incredibly helpful! I was in almost the exact same situation last year and was stressed about it for months. Made about $425 selling old designer bags and shoes on Depop, every single item at a significant loss from what I originally paid. After reading everyone's experiences here, I feel so much more confident about my approach. I ended up not reporting anything since I was under $600 and didn't receive a 1099-K. I did create a simple spreadsheet tracking my original purchase prices vs. sale prices though, just like several people mentioned. One thing that really helped me was going through my old credit card statements to find purchase records for items I'd bought years ago. Even if you don't have the original receipts, bank/credit card records can serve as proof of your purchase price. I found records going back 3-4 years that way. Mae, based on everything shared here, it sounds like you're in a really safe position at $350 with everything sold at a loss. The consensus seems to be that this falls under personal property disposal, not taxable income. Just keep whatever records you can find and don't stress too much about it! Thanks everyone for sharing your experiences - it's so helpful to hear from people who've actually been through this situation rather than just reading conflicting advice online.

I've been following this thread and wanted to share my experience since I was in a very similar situation last year. I made around $380 on Depop selling old clothes and accessories, all at a loss from what I originally paid. After going through this exact same stress and confusion, here's what I learned: since you're under the $600 threshold and everything was sold at a loss, you most likely won't receive a 1099-K and don't need to report this as income. The IRS treats this as disposing of personal property at a loss, not generating taxable income. What really helped me was creating a simple tracking system. I made a basic spreadsheet with three columns: item description, original purchase price, and sale price. This showed clearly that I had no profit and actually lost money overall. I also kept screenshots of my Depop sales and dug through old emails and credit card statements to document my original purchase prices. The key distinction that put my mind at ease was understanding that selling your own personal clothes and accessories that you bought for yourself is very different from running a resale business. You're just decluttering items you no longer want, not trying to flip products for profit. At $350 with everything sold at a loss, you're really in a safe position. Just keep whatever documentation you can find showing your original purchase prices were higher than your sale prices, and try not to stress too much about it. This thread has shown that many of us have been in this exact situation and handled it the same way!

This thread has been incredibly reassuring! I'm in almost the exact same situation - made about $290 selling old clothes and shoes on Depop, everything for significantly less than what I originally paid. I've been worrying about this for months and googling constantly with no clear answers. Reading everyone's experiences has really put my mind at ease. The consistent message seems to be that selling personal items at a loss under $600 is generally not reportable income, especially when you're just decluttering your own belongings rather than running a business. I'm definitely going to follow the advice about creating documentation. I still have most of my original purchase receipts in my email, and I can pull my Depop transaction history to show the sale prices. Creating that simple spreadsheet comparing purchase price vs. sale price seems like a smart way to clearly demonstrate the losses. Mae, I hope all these responses have helped calm your nerves like they did mine! It sounds like at $350 with everything sold at a loss, you're in a very safe position. The fact that so many people have been through this exact situation and handled it the same way is really comforting. Thanks to everyone who shared their experiences - this is exactly the kind of real-world advice that's impossible to find just searching tax websites online!

Mae, I completely understand your stress about this - I was in almost the same exact situation last year! Made about $320 selling clothes on Depop, everything at a loss. After dealing with the same confusion and conflicting online advice, here's what I learned: at $350 with everything sold below your purchase price, you're very unlikely to receive a 1099-K and generally won't need to report this as income. The IRS treats selling your personal clothing items at a loss as disposing of personal property, not generating taxable income. The key factors working in your favor: - You're under the $600 reporting threshold - Every item sold for less than you paid originally - These are personal items you bought for yourself, not business inventory - You're doing occasional decluttering, not running a resale business My advice: create a simple record showing what you originally paid vs. what you sold each item for. I made a basic spreadsheet and kept screenshots of my Depop sales. Check your email for purchase confirmations and credit card statements - I was able to find records going back years this way. Don't stress too much about it! The consensus from everyone who's been through this situation is that you're in a very safe position tax-wise. You're not actually making profit, just recovering a small portion of what you originally spent on clothes you no longer wanted.

Mae, I completely understand your stress! I went through this exact same situation last year and was panicking about it for weeks. Made about $310 selling old clothes and accessories on Depop, every single item for less than what I originally paid. After doing tons of research and talking to a tax professional, here's what I learned: since you're under $600 and everything was sold at a loss, you almost certainly won't receive a 1099-K and don't need to report this as income. The IRS considers this disposing of personal property at a loss, not generating taxable income. What really helped me was understanding the key distinction - you bought these items for personal use and are just decluttering, not running a resale business. That makes all the difference in how it's treated tax-wise. My recommendation is to create a simple record showing what you paid originally vs. what you sold each item for, just for your own peace of mind. I made a basic spreadsheet and kept screenshots of my sales. You can often find old purchase records in your email confirmations or credit card statements if you don't have receipts. At $350 with clear losses on every item, you're really in a safe position. Try not to stress too much about it - you're handling this correctly and you're definitely not alone in this situation!

Hey Mae! I was in almost the exact same situation last year - made about $380 selling old clothes and bags on Depop, everything for way less than what I originally paid. I totally get the stress you're feeling! After going through all the same confusion and conflicting advice online, here's what I found out: at $350 with everything sold at a loss, you're very unlikely to get a 1099-K and generally don't need to report this as income. The IRS treats this as disposing of personal property at a loss, not generating taxable income. The key things in your favor are that you're under the $600 threshold, sold everything below your purchase price, and these were personal items you bought for yourself (not business inventory). You're just decluttering, not running a resale business. My advice is to keep whatever records you can find showing what you originally paid vs. what you sold items for - even just a simple list or spreadsheet helps. I went back through my emails and credit card statements to piece together my purchase history, which was easier than I expected. Try not to stress too much about it! Based on everything I learned and what others in this thread have shared, you're in a really safe position. You didn't actually make any profit, just got back a small fraction of what you originally spent on clothes you weren't wearing anymore.

Mae, I totally get your stress about this! I was in a very similar situation last year - made about $295 selling old designer clothes and accessories on Depop, every single item sold for less than what I originally paid. After months of worrying and reading through conflicting advice online, here's what I learned: at $350 with everything sold at a loss, you're very unlikely to receive a 1099-K and generally won't need to report this as income. The IRS considers this disposing of personal property at a loss rather than generating taxable income. The key factors working in your favor are: - You're under the $600 reporting threshold - Every item was sold below your original purchase price - These were personal items you bought for yourself, not business inventory - You're doing occasional decluttering, not running a resale operation My recommendation is to create a simple record showing what you originally paid vs. what you sold each item for, just for peace of mind. I made a basic spreadsheet and kept screenshots of my Depop transactions. I was able to find a lot of my original purchase info by searching through old emails and checking credit card statements. Don't stress too much about this! You didn't actually profit from these sales - you just recovered a small portion of what you originally spent on clothes you no longer wanted. Based on what I learned and what everyone else in this thread has shared, you're definitely in a safe position tax-wise.

Hey Mae! I completely understand your stress - I was in almost the exact same situation last year. Made about $365 selling old clothes and jewelry on Depop, everything for way less than what I originally paid for it. After going through the same confusion and panic you're experiencing, here's what I learned: since you're under $600 and sold everything at a loss, you most likely won't receive a 1099-K and don't need to report this as income. The IRS treats this as disposing of personal property at a loss, not generating taxable income. What really helped me understand this was realizing the key distinction - you bought these items for your own personal use and are just decluttering your closet, not running a resale business. That makes all the difference in how it's treated for tax purposes. My advice is to create a simple spreadsheet showing what you originally paid vs. what you sold each item for, just for your own records and peace of mind. I went through my old emails and credit card statements to piece together my purchase history - it was actually easier than I expected to find most of the info. At $350 with clear losses on every single item, you're really in a safe position. Try not to stress too much about it - you're handling this correctly and you're definitely not alone! This thread shows how common this exact situation is.

Mae, I completely understand your stress about this situation! I went through something very similar last year when I made about $320 selling old clothes and accessories on Depop - every single item sold for less than what I originally paid. After doing a lot of research and worrying for weeks, here's what I learned: at $350 with everything sold at a loss, you're very unlikely to receive a 1099-K and generally don't need to report this as income. The IRS treats selling your personal clothing items at a loss as disposing of personal property, not generating taxable income. The key factors in your favor are that you're well under the $600 threshold, sold everything below your purchase price, and these were personal items you bought for yourself (not business inventory). You're just decluttering your closet, not running a resale business. My recommendation is to keep simple records showing what you originally paid vs. what you sold items for - I created a basic spreadsheet with item descriptions, original cost, and sale price. I was able to find most of my purchase info by going through old emails and credit card statements, which was easier than I expected. Try not to stress too much! You didn't actually make any profit - you just recovered a small fraction of what you originally spent on clothes you weren't wearing anymore. Based on everything I've learned and what others have shared, you're in a really safe position tax-wise.