David; You still have to do the paperwork and keep detailed records to PROVE your claim that you lost money .... and file an annual tax return on your expenses vs. income ... and pay the taxes due. My original point was that MOST ebayers don't do that ... and some day the tax man may come knocking on their door looking for the tax money that is due from chip sales. All it takes is an audit of someone else who has sent you checks in payment for chips; and guess who the IRS will be looking for next?