How to Handle the Regular Sale of Personal Items on eBay
Hello! I am a bit confused how to go about the correct way to account for personal items sold on eBay. I run a a small home-based business where I consistently offer for sale and frequently sell personal items from our own home (28+ years) and my mom's home (50+ years). Over this long time we both have accumulated lots of stuff! I have no idea how much these items cost when acquired, or even when they were acquired. I am wondering: 1) Since I regularly engage in selling personal items (I also have business inventory purchased for resale and between the two I have over 3,500 listings), I am assuming I need to include these items as inventory when I place them up for sale. Is their cost then FMV? 2) Also, since I regularly sell these items, I am assuming they wouldn't fall under the sale of personal property, per se, since my intent is to engage in business and make money and they are in fact part of my business sales and show up on my 1099-K? 3) If I do place these items in inventory, I am assuming, since I have no idea what their original costs were, that I would never make a profit on them as their cost will be what I sold them for (FMV)? For example: I list a used coffee pot for sale on January 1st on eBay for $19.95 based on competitive pricing. I sell it on February 14th for $15 as I accepted a best offer. I can use the $19.95 as cost (FMV) and record the sale at a $4.95 loss because it is a business transaction. Is that correct? I am so confused!
