I sell collectibles on amazon and sold many personal items,purchased over the years prior to selling,along with business purchased inventory. How do i account for COGS?

[greg_fior]

the personal items are also collectibles of considerable value and i may not have all the receipts showing their original cost. i understand that in any case the starting inventory = $0 on year 1.

[AmandaR1]

If you didn't use accrual accounting method and track a cost of good sold account in your accounting records, then you shouldn't use COGS on your tax return. As long as your total sales were less than $1,000,000 for the past 3 years (or $10,000,000 in a second exception), then you are not required to use 'inventory accounts."

Instead, you can just deduct all the costs of purchasing inventory, under the expense category supplies. To read this info at the IRS see the "inventories" and "qualifying taxpayer" section at the following IRS resource: https://www.irs.gov/publications/p334#en_US_2017_publink1000313278

[greg_fior]

how do i value the personal items in inventory supplies if i lack proof of cost of purchase?

[AmandaR1]

Recreate records the best you can, look at bank or credit card statements, websites, emails. Taxes are an exact type of thing and you have to do the best you can to make it that.