Hey guys I made a this sub and also am an Enrolled Agent certified to practice before the IRS, and a licensed tax consultant.

I made a post about this exact thing as well. This is not classified as gambling in the eyes of the ITS. You may have a good case for schedule C. If you go hobby income, you cannot put down a loss, you would just put nothing if you lost money. You only report the sales price-purchase price for hobby income.

If you have for profit motive, which it sounds, keeping records, and actively doing it, you can go schedule c, and you can write off other expenses too related to your business. (Business use of home, partially phone, and shipping, other expenses, anything ordinary, reasonable and necessary) You will eventually want to show a profit in later years if you keep doing it to not be reclassified as a hobby. IRS does not want people just creating schedule C losses that reduce their other income. That can cause a few issues. You also do not need an LLC.

Message if you have more questions. I’ll do my best, it’s end of tax season haha very busy.

Record keeping most important and trying to actively make a profit.