How do I convert several decades of supply and material purchases over to a business? Since many of the purchases are quite old, I do not have the receipts and could only estimate what I paid. I can look up current value. For accounting purposes, do I personally sell the items to my business? Or, do I not do anything and when I make an item to sell, I estimate the value of the materials that went into the item for use as my expenses? Is it best to convert one large lump of supplies and materials up front, or just on a project by project basis I convert some materials to the business as I actually use them? Once the business is started, making supply purchases and tracking the expenses will be easy, but what do I do about the many thousands of dollars of materials I've already accumulated? Will I still be able to deduct these expenses? Also, if you know of an in-depth resource on this topic, hobby to business, I'd appreciate it.
