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