1040 Form Schedule C Question On Inventory

[califdreamin2004]

 I have a question on inventory. If you sell a personal item at a loss and didn't make a profit then how do you handle that as far as your inventory goes? Thanks ahead of time for any help.  How do you go about reporting it on your taxes or do you?  Thanks for any replies!

[ebooksdiva]

I use a CPA .

You may want to consult a tax professional to get the best advice.

[silverstatetreasureboxes]

@califdreamin2004 

If I have a say a collectable figurine like Llardos, bought years ago, can't remember price or it was a gift than I look up comparative figurines.

    I write it down where I found it, price it sold for or run a copy of listing for my personal COG pile.

    If my item sells for less than the value I just researched, ( say value is $100, mine sold for $50) it's a wash, I can use only $50 against my COGs.

    Hope that helps, Silver

[ryry-jj]

Tax advisors are your best friend when it comes to this topic.  If it was a gift, then when you sell it, it is all profit.  As mentioned above, if you sell it for less than you most likely paid for it, you would zero out.  You can never take a loss on an item and carry it over to reduce profits on other inventory items without receipts.

The other thing to remember, is be consistent on how you value items without receipts.  Don't go back and forth between thrift value and retail value.  And finally....ask your tax professional

[silverstatetreasureboxes]

@ryry-jj 

You wrote that so nicely, it's hard to write out what your actually trying to say, 😆.

    I shouldn't have stated gift, that's a profit.

     I have a CPA as well, and he stated that the IRS will accept hand written receipts with a fair value attached.