THE IRS HAS TAKEN MY TRANSACTIONS VIA PAYPAL AND IDENTIFIED THEM AS TAXABLE INCOME

What if the OP does not have receipts for some of his original purchases? How does he then establish the cost basis, especially if he bought the gear many years ago?  Is the IRS likely to accept reasonable, good faith estimates that indicate the original purchase prices were higher than the sale prices?  

watching this i can only say -- see an accountant. This is basic accounting. You need costs/bases, revenues and the difference.  Clio noted the threshold, which you may or may not have met.
G

This country is broke . when are you guys going to realize that. were seeing massive inflation right now because its the only way they can handle the debt problem , its not transitory like the secretary of the debt said , you haven't seen nothing yet , this is not the forum to talk politics or economics but since you brought it up here we are. Buy your HIFI gear now and save because tomorrow you'll pay double. Biden is your man he will fix everything he's so great !! I cant wait for him to keel over on live tv im going to get the popcorn out. Just enrolled my child into private school cause of the absolute BS there teaching these children. The masses think everything is normal because they dont know any better , things are NOT ok wake up you idiots. The IRS needs money and they will be cracking the whip your just getting a little taste of what's to come. 

The irs can only see the transaction that was reported to them. If this is for the sale or equipment you can apply the basis rule. Lets say you bought a piece of equipment for $10,000 and sold it for $8,000. The irs sees the $8000 sale not the purchase of $10,000. All you need to do is report said sale as a $2000 loss and produce the receipt of original purchase. If you have also sold equipment where you made money from your original purchase you will be able to use the loss from other sales to offset this gain. What if you don’t have receipts? Just report what you think it was and best rule with the irs ( which is the criminal collection division of the dc cartel) report at least a small gain say $250 and pay the tax on that amount. Just make sure the amount you report does not move you into the next bracket and impact your cap gains on investments or you social security taxation.

@nickaboy1

you are just touching the tip of the tip of the tip of this iceberg. Right on brother my children are in private school too!