I buy a lot of supplies from another country to sell on ebay. They are small company so they dont give receipt

Question

What else can i do in order to prove the IRS that the money I spent on them are actually business expenses? I just need a way to make it deductible. on my taxes. Can I just make a "disclaimer" forn stating something like,


I------------------------- represent a company that sells merchandize to (me) who later on sells it on Ebay.
SIgnature-------------------

THis is just an example, but will something like this with a monetary expense value and a signature from them would be enough to prove Uncle Sam that the money I spent on are actually business expenses? if not, give me an example. HELP

Thanks.

Answer 1

Do you get a bill for the items from them, or some kind of packing slip? That, along with a copy of your cancelled checks or credit card statements for those amounts, should be enough in an audit.

Answer 2

Keep copies of your ebay transactions. Print your ebay statements and the transaction details. If you're using credit cards or bank transfers, your bank statements and credit card statements may be enough for the IRS.

As long as you can show how the money changed hands, and what you were buying with it, that's usually enough for the IRS. Don't do business in cash. If you're using money orders, write the date and the items you're purchasing on your money order receipts and save those.

If you must do business in cash, do it in person and insist on a receipt.

Answer 3

1. You should be paying customs, duties, tariffs, or something similar when you import this stuff.

2. International shipments usually have a "commercial invoice" that shows the value.

Answer 4

how do you paid for it, by check or cc. how you paid for it does have some kind of paperwork.