reselling gear (at a loss)... deduct or scratch from the record

[The Byre]

That depends on how they were booked when you bought them. If they are a capital expense, then you have to take the already booked depreciation into account. If you are running a simple profit and loss account (which is what it sounds like) then you just book them in and book them out.

If the ebay and PP fees are not taken at source (i.e. taken off the money received), then they have to be booked separately. Otherwise, you just book the money received.

[therealbigd]

If you listed them as capital gains on a previous tax return, then sold them on, you'd have to pay tax on the money gained.

This is because, if you've put them on a previous tax return, they've become a business asset, not your personal property.

If you didn't have to pay tax, people would buy gear, put it on their tax return, then immediately sell it on, and make a living off the tax money gained in the process.

[yosefTux]

I do it the way my tax accountant tells me is least likely to raise any flags at the IRS. Yes, it depends on how it was handled on the previous year's taxes, but for a purchase and sale the same year you have your choice. In that case it depends on what the business needs it to be.