Craft Store

[barzillai]

Client has opened a craft store. For years she visited yard and estate sales all over the country with the intent of eventually doing this. However, there are no records at all of what the various items cost her. Should I value opening inventory as zero (my inclination), or have her make best guesses at what her she paid for items?

Thank You

[JG EA]

Just an idea: Perhaps have her figure FMV for items and have her list them. Was her purchase price less or more? If less, have her list what she paid, if more take the FMV. Perhaps double check that she actually purchased them, but have her list her cost.