We started an LLC this year selling items online. Our LLC initially sold items we owned personally
for 10, 20, 30 years. We have no
receipts for the cost of those personal items. We have receipts for purchases
made after opening the LLC. We know our
final sales and closing inventory. Our sales were way less than $1Million and never will be that much (ha!). We are set up for cash basis accounting.
How
do we account for (value) our personal items in COGS?
Also, do we even need to track inventory? I am trying to understand IRS publication 334 and whether we qualify to not have to track it.
