Q. Most of the items sold were given to me free. Would the COGS (cost of goods sold) be $0.00?
A. No (probably). The cost basis, for the recipient of a gift, is the giver's cost basis (typically what they paid for it). However, the cost basis of "found" items is $0.
If you are in the business of acquiring and selling items, items picked up free from garage sales and the internet do have a basis (COGS) of $0.
