I've had a personal collection of sports cards that I have compiled over 40 years. I also have an ebay store that sells these types of items along with other stuff. In that business I keep normal records and receipts and deduct expenses as allowed by law etc, etc.
Now I have decided to part with my personal collection and my ebay store which has existed for over 15 years is the best place to do this. How should I treat this merchandise? If I sell on my ebay store I don't have receipts for at least 30 of the 40 years I was collecting so I can't deduct exact costs like I would other merchandise I sell there. Do I estimate what these items cost me at time of purchase and list as expenses even though some of those purchases were made 40 years ago?
Alternately should I sell my personal collection to my company entity and then take a deduction at current value?
For discussion let's say purchase price was $10,000 but current value is estimated at $50,000. I estimate it will take a couple years to sell on ebay.
I also have a full time job and my ebay store is a sole proprietor so all these totals get plugged into the same taxes.
What's the best way to handle this?
