Your COGS is not zero. It is the same as your "cost basis", which is the fair market value on the date you you inherited them.
Q. How are we defining "Personal goods"?
A. Personal property are items you bought for your personal use, including inherted items.
Q. Is there an IRS definition of that or prohibition on a business selling personal goods?
A. There's a prohibition on deducting expenses, effectively creating a business deduction for items that are personal property.
Q But is there any way to deduct the cost of the storage?
A. No.
Q. Is there any way to deduct the cost of the the booth at the antique mall?
A. Yes, if your primary purpose is the sale of business inventory and the personal items are "just along for the ride". But, if you're renting the booth primarily to sell persoan stuff, then no. But, then there's also no profit from which to deduct expenses (sale of a $1item that has a cost basis of $1 = 0 profit/reportable income).
