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Returning Member
posted Jan 21, 2023 8:59:27 AM

Cogs

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

0 3 307
2 Best answers
Level 15
Jan 21, 2023 9:23:09 AM

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.

Level 15
Jan 21, 2023 9:31:18 AM

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.

3 Replies
Level 15
Jan 21, 2023 9:23:09 AM

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.

Returning Member
Jan 21, 2023 9:26:59 AM

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

Level 15
Jan 21, 2023 9:31:18 AM

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.