How do I pay taxes on things that I sold that I purchased with cash?
2018-07-19 1:46 pm
I have an online business on Ebay. I purchase my inventory with cash and make a pretty hefty profit on it. The problem is that I have no idea how to show my proof of how much profit I made since I don t have any receipts of the purchases that I made since i buy my inventory with cash. What can I do to pay taxes for these items that I sell online?
回答 (6)
2018-07-19 2:02 pm
Start getting receipts.
There was a case that was decided a couple of weeks ago where the court declared that the profit was 84% of the revenue.
There was a case that was decided a couple of weeks ago where the court declared that the profit was 84% of the revenue.
2018-07-20 12:35 pm
Keep very good, detailed records of all your transactions. If you are audited, the auditor might accept those records.
2018-07-20 9:25 am
Contact a CPA LAST YEAR. You ABSOLUTELY MUST learn to keep proper records.
As things stand, the IRS will not dispute claiming 100% of your gross revenue as profit.
As things stand, the IRS will not dispute claiming 100% of your gross revenue as profit.
2018-07-19 5:53 pm
Get receipts from now on. You can point to those as evidence of what the cost was even before you started keeping acceptable records.
Purchasing with cash means the purchase does not appear on your credit card statement, but that's unrelated to getting a receipt. The store you purchased from prints a receipt regardless of what payment method you used.
Purchasing with cash means the purchase does not appear on your credit card statement, but that's unrelated to getting a receipt. The store you purchased from prints a receipt regardless of what payment method you used.
2018-07-19 2:05 pm
If you can't show cost the assumption is you got it for free and will pay taxes on the gross sales.
There are a handful of ways to get around this. I would recommend you find a local enrolled agent to help you with a small part of those huge profits. One way is to keep extensive contemporaneous notes tracking purchases and bank withdrawals of cash to show what was bought. This is if the yard sale people will not write you up a receipt for your purchased items. You can ask for them at time of purchase. Even a signed ha d written note can be helpful.
There are a handful of ways to get around this. I would recommend you find a local enrolled agent to help you with a small part of those huge profits. One way is to keep extensive contemporaneous notes tracking purchases and bank withdrawals of cash to show what was bought. This is if the yard sale people will not write you up a receipt for your purchased items. You can ask for them at time of purchase. Even a signed ha d written note can be helpful.
2018-07-19 9:39 pm
What state?
收錄日期: 2021-04-24 01:06:01
原文連結 [永久失效]:
https://hk.answers.yahoo.com/question/index?qid=20180719054622AAbrndI