Cogs

[Gmadru83]

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

[Anonymous_ · Accepted solution]

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.

[Gmadru83]

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

[Anonymous_ · Accepted solution]

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.