Selling Gold Jewelry and Schedule D

[DonnaNoble]

I buy large lots of costume jewelry for resale which I will report on Schedule C. Sometimes there are gold or silver pieces that I sell at a cash for gold place. Do I report those sales separately on Schedule D, and if so, how would I figure my cost basis since it's just one or two pieces in 25 lbs of jewelry and junk? I don't know what the FMV would have been on the purchase date because gold value goes up and down. Should I just estimate that it's $1 if the whole lot was around $100 and had several hundred pieces?

[DawnC]

No.  You don't need to report them separately on Schedule D.   Just include the cash income as part of your business income on Schedule C.  

[DonnaNoble]

Thank you so much!