USA Resale of personal collection items

[Zimmy]

Hi
I have been selling my husbands vintage Hot Wheels private collection as well as some other collectible items on Ebay. I also purchase auction and other items and resell them on Ebay as well. I have all my items I purchase recorded on Excel spreadsheets and other bookkeeping journals. My question when reconciling accounts I am confused as how to determine the Cost of Goods Sold for my husband's collectible items. He started buying them in the 60's. The values for these are all over the board and as you can imagine...a toy car purchased in the 60's for .50 can now bring a hundred dollars or more when sold now. How do I figure out what to put for the cost of these items to offset my books. Do I take the amounts they each sold for and use a percentage of that or what? Obviously this seriously affects my total sales etc when it comes to taxes. Any ideas?


Thanks
Zimmy

 

[kirby]

You will have to estimate the cost. And yes, if it’s about 50 cents then that is the number to use. As you said, this will result in a lot of taxable income. So to mitigate that, consider seeing you tax person now to help advise you with finding tax deductible expenses related to your business.

 

[Zimmy]

Thanks so much for replying!

 

[Zimmy]

So what about this? SInce the product sold was my husbands collection and I sold it through my Ebay store and all monies for those sales went to my own bank account not one with his name...can I basically "purchase" the collection from him to enable me to show a cog for those items?

 

[kirby]

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