Quote:
Originally Posted by thecatspajamas
Bill,
I'd be curious to hear your take on this as it relates to remaining inventory value/cost of goods sold, as most non-hobby professionals I've talked to don't seem to understand that the "value" of most purchased collections cannot be split evenly among its pieces, and sometimes value of a particular piece cannot be determined until it is sold, which may or may not happen in the same calendar year that the collection was purchased.
Or am I just making this unnecessarily complicated?
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Bill can answer way better than I can, but the way I do it, is I take the total number of pieces bought and divide that number by the total price paid. That is my true cost basis per piece of a lot. The sell price is irrelevant and some will be high and some low, but the cost per piece is the same. As a cost basis it all equals out that way. As far as time you own something, I think that will have more to do with long or short term gains. Consult a tax professional
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