IQuitWoW
Sep 2, 2012, 07:02 PM
I purchase many things off Craigslist in cash and sell them on eBay and Amazon. I taken in about $60,000 from both sites but only a profit of about $10,000. How do I deduct my cost of inventory so that I pay my 15% self employed tax on the $10,000 and not $60,000.
There's no way the IRS could ask me to pay on the full $60,000, right? I mean they couldn't assume my inventory came out of thin air. There is just no paper trail unfortunately.
There's no way the IRS could ask me to pay on the full $60,000, right? I mean they couldn't assume my inventory came out of thin air. There is just no paper trail unfortunately.