Cogs

Forum|Forum|3 years ago
January 21, 2023
1 reply
1 view

I'm going to recive a 1099k from ebay. I did around 9,000 in sales. Most items were free that I aquired over the years. Do I put 0 for cogs I have. O receipt to prove the price of the item

Best answer by Anonymous_

Are you in the business of selling products (i.e., what you sold is merchandise)?

Regardless, you are stuck with a basis (or cost) of $0 if you cannot substantiate your actual cost for the items sold.

Anonymous_Answer

Level 15

Are you in the business of selling products (i.e., what you sold is merchandise)?

Regardless, you are stuck with a basis (or cost) of $0 if you cannot substantiate your actual cost for the items sold.

Gmadru83Author

Level 2

So do I put 0 for cogs. Does that increase a auddit risk?

Anonymous_

Level 15

It most likely does not and would not present much of an issue, regardless, in the sense that the IRS would be hard pressed to claim that you paid less than $0 for the items.