Inventory

[rrtax]

Hello
I have a new client who has opened a "thrift shop". He has anitques that were from his personal home that he put in shop along with many other items large and small. The other items some he knows what he paid for them but some he bought in lots. So my question is how to create an inventory with the items from his home that were purchased many years ago and he does not know how much he paid for them then and the items he bought in a lot or group some items are large some small, not identical, so how to figure the cost for those also? Any help would be great. Thank you.

[BOB W]

IRS takes a posistion just like stocks. If you can't prove cost basis then it must be Zero. Receipts are required for all items purchased to prove cost.

If you know what a group purchase cost, use the selling price of each item to allocate the cost of each item in the group.

[rrtax]

Thank you Bob W. I was afraid of that for the stuff he can't remember or not have receipts for.