We are seeing this issue more and more.  If the person was not in the business of selling clothing, and was not selling personal property at a profit then I personally would create a Schedule C to record the revenue from the 1099-K and then an offsetting expense to exactly match it.  Whether you call it purchases or something else is up to you.  This way the IRS matching program will match exactly the 1099-K and you're creating a -0- profit report.  Anybody else have a different opinion?