Post #58
Do you have to show cost and profit for each specific item sold or can you separate the two.
Example: I purchase a lot and sold the items but thought I might be able to lump them together with the total lot profit loss verses each specific item or do you have to track each item and extend the information for that item?
The answer is sort of "it depends." If in one calendar year, you buy a lot of goods and sell it all in one year, you can absolutely lump it together in the cost of goods.
BUT, let's say you bought a lot of goods and only sold a portion of it in one year. In that case, you'd need to somehow attribute part of the cost to cost of goods (items you sold) and part to inventory (the part you did not)
Inventory and cost of goods is one of the toughest parts of retail selling. These are good questions.
Diane Kennedy, CPA
www.taxloopholes.com
Must use Buy It Now and PayPal.
)
)
)
Welcome to the Workshop Board!
Visit our
eBay Education 