eBay basis .. April 1, 2005

Dear TaxMama,

I will be filing a schedule C this year for my eBay sales. But I have no cost of goods because I get my items from my attic. I am selling things I have collected over the years. How do I determine a price to report to the IRS? I don't remember what I paid for them.

Thanks Sally

Hi Sally,

That's a very good question.

And after all, if you have them, you either bought them, or someone gave them to you as a gift.

If these were things you bought, you might want to pick up a copy of It's Deductible. IRS accepts those values as your cost when you make charitable contributions. So, it stands to reason that they will accept it for this as well.

As to anything not listed in there...make your best guess on what you paid for it. You're more likely to remember than anyone else. Right?

If you inherited it....well, what was it worth at the date of that person's death? Do the best you can to come up with reasonable numbers.

Do your best to print out the information you find. You want to document your sources for your files.

If you have some basis for your numbers, IRS will accept your reasonable values.

These two tools will help with the rest of your record-keeping and tax reduction....and with growing your business.

Best Wishes,
Eva Rosenberg, MBA, EA

eBay Basis