Here's what you do. IN COGS, your BOY inventory is what *you* paid for the items. Makes things easier for you, since that's what you do for all of your inventory you purchase anyway.
Then your COGS (Cost of Goods Sold) can go one of two ways with the consignment sales.
- You can include only the amount you received from the consigner, or;
- You include what the item actually sold for. Then you report the consigner's cut of the sales price in Other Costs to Prepare for Sales. Now you might be thinking that would be in the Cost of Labor box, but no. If you enter it in the Cost of Labor box, then the IRS is expecting you either have employees (which you don't) or you issued 1099-MISCs to your consigner. (The 1099-MISC would only be required if your cost of non-employee labor was more than $600 to any one individual. So if your consigner's cut is less than $600, I personally would go ahead and enter it in the Cost of Labor box.)
