TaxSrv" <n3_eu[at]comcast.net> wrote:
- quote -

Thanks for the reply and the advice on fees.

I wasn't going to try to claim a loss. Since I can't prove
my cost I did not want to incur a loss (almost guarenteed)
and have it viewed as a profit. I just want to be able to
sell the stuff with no impact on my business income and I am
a bit uncomfortable not beiing able to prove the cost basis.

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"John Lea" wrote:

- quote -

These sales do not go on your Sch C, nor do they go anywhere
on your return. Therefore, when you compute gross receipts
and COGS, don't include sales of personal items at a loss.
Keep records of these transactions, though, so upon any IRS
audit you can show why your gross receipts do not include
all money you rec'd. Also, don't deduct any cost of sale,
such as merchant fees, shipping costs, and any online
auction fees.

Fred F.

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I have a small business that is a half a step above a hobby.
I am able to take credit cards through the business and so
would like to use that to sell personal items as the whim
hits me. My problem is I have no idea what the items cost
me so if I run it through the business I have $0.00 cost and
$X.00 income resulting in profit, all of which would be
taxable. (Which is not a good thing, especially since I
would not be making a profit but likely a loss.)

I did this once before and just showed as my cost the
proceeds of the sale (wash). I doubt this this the correct
way and wonder how this sort of thing should be handled.
Any suggestions? TIA

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