Cost of goods

[TJR2023]

I purchased trading cards through out the years starting in 2014 and have sold 40 items in 2022 on eBay but did NOT receive a 1099k. I have receipts for everything and was wondering how would i figure in the cost of goods sold? and what method would be best to report this? 

[Vanessa A]

The Cost of Goods Sold would be the amount you paid for the cards when you bought them. 

After you walk through the steps to enter your income from selling the cards, you will then be able to enter your expenses. 

The method you would use would depend on the cards.  If all cards were the same, then you could use the FIFO (First In First Out) method. Example. in 2014 you bought 50 cards and paid $100 for the cards, in 2015 you paid $120 for 40 cards , 2016 you paid $150 for 30 cards.

In 2014 each card you bought cost $2.  So the first 50 cards you sell your COGS would be $2 per card.  After that 50 is sold, the next 40 cards would be $3 per card and then the final 30 cards would be $5 per card. 

If the cards are all different and you know how much you paid for each individual card, then you would simply match the cost you paid for that card to the sale. 

[TJR2023]

Yes id like to treat them individually as each cards value range over $100 to the thousands. Im just unsure where to enter this information. I dont see cost of goods in the expense selection either so not sure where to enter that information.

[Vanessa A]

Are you doing this as a business or selling off investments?

[TJR2023]

I was doing this as a business since it was recommended that way. 

[Vanessa A]

If this is selling off of your investments in cards you would enter the sales and expenses by selecting the following.

• Investments and Savings click Show More
• Add Investment
• Enter a Different way
• Select Other then Continue
• When asked what type of Investment did you sell select Collectibles.  
• Answer the rest of the questions on the page as they pertain to you including date of purchase, price you paid and amount you sold them for.  

If this is a business, then you would enter your cards as inventory.  For example, if you have a trading card store, this would be a business. If this is your personal collection you would enter it as Investment sales. 

[TJR2023]

If i went the investment route, where would i enter the eBay fees and shipping cost for each item?

[PatriciaV]

The fees and shipping would be selling costs when you report your investment sale(s). This activity is reported under Federal Taxes >> Wages & Income >> Investments >> Stocks, Bonds...Other.

As you work through the sale section, look for a page titled "Select any less common adjustments that apply." Check the box for "The reported sales price did not deduct all fees or selling expenses." A box will appear where you can enter your fees and shipping costs.