Grading Costs - Do you Expense as Fees?

Cougar1978

Curious: How do you treat grading costs on your coins & PM: expense as fees (sch C) or allocate to inventory (investment) cost of the item?

tyler267

Inventory

jmlanzaf

Fees

But it didn't really matter. IRS won't care.

jdimmick

years ago, I used to put in under an expense on page 1 of schedule c.
My acct a few years ago, said its best to show under line 39 on cost of goods sold, which i have been doing for several years.
He also said, accuracy and correct info is the most important regardless of how its shown.

mannie gray

Under business expenses.

jessewvu

For the business, fees. For personal, inventory.

Crypto

Discretionary Beer money

amwldcoin

I add it to cost of goods sold....IE I add it to what I paid for the coin.

The only thing I do differently is when I submit a group of coins for + review. If I get 2 coins out of 20 those 2 get the cost of the entire submission costs added.

gradeacoinsebay

Not a CPA but probably doesn't matter as long as you are consistent. I personally expense all grading as fees and don't inventory them

bigjpst

I don’t send much in for grading but the ones I do I add to that coins cost. The only thing I typically put in fees are eBay PayPal and CC transaction fees.