How to value pre-owned used inventory for tax deductions?

[varebelrose]

Forgive me if this is in the wrong place.

Most (~90%) of what we sold in the past was a combination of items that my wife and I owned for years (decades in some cases), collectibles that we collected and either changed interests or were swapping up to better items, or  inherited family estate items.

I understand deducting selling fees and expenses when filing taxes (eBay fees, shipping supplies, postage, etc.). But I have always been hesitant to place a cost on the items we sell, because in the vast majority of the cases, we have no receipt or proof of what the item cost or was valued at.

For example, if I had a leather coat that my ex-wife gave me for Christmas in the mid 1990s (original cost ~$100), and I sold it on eBay for $50, what would/could I use to determine if there was a deductible inventory value and what that value should be?

I'm just curious how other sellers deal with this. I am thinking I missed some good deductions.

[Anonymous]

Isn't there some kind of blue book (similar to cars) for antiques and collectibles? Not sure how mainstream yours are to be included in those.

[alcoforever]

Your best answers will come from a tax professional.

However, you can just estimate what you paid for the items originally.   As long as the numbers are not outrageous, I doubt the IRS will care to question you on them.

[powell-memorabilia]

@varebelrose 

If you are running as a business, you use the acquisition cost.  If you are downsizing, selling off your personal collection, and not really making money, your cost basis is what you get from the sale.  In effect, your profit is zero.  

no, you can’t sell $5,000 worth of stuff, slap on the original cost, then deduct the “loss” from your other/non-eBay income.

[blingsupreme]

I am downsizing my vintage jewelry collection that has been stored away offer 15 years ago.  I had no idea how much I would sell.  I have no idea of the original price, which is 99% of my items sold.  The few I purchased to resale, I didn't make much on at all, even lost on 1.  Maybe accountant can tell me 

[ryry-jj]

You do need to ask a tax pro this question.  But no matter what, you will need to be consistent, you cant estimate true retail for one item then thrift  value on another.   And if your basis is true retail, then you most likely need to at least have some proof of that value to go off of.

My take, if you think you paid around $100, and sold for $50, I'd put $50 dollars as my cost basis.  You know you didn't profit, but you aren't going to be able to take a loss against other profits unless you do have receipts and proof.  But be consistent with how you value these non receipt items, and log them in