...in case I get a tax audit? What documentation for my flea market / swap meet business should I be making in case I get a tax audit?
I sell at a swap meet. I buy from several sources, usually a bunch of items in a lot. I sell about 500-700 items a day ranging from 50 cents to a dollar. I'm not being audited by the IRS nor am worried about it due to a return, but want to make sure I stand a chance against one.
So would I document exactly what kind of item sold, price, sales tax collected, day that the item sold, and price I got the item at? How would I get the price I got the item at if I got it in a box mixed in with other items that vary in price?
Also would I need additional documentation if I were to get a tax audit by state of CA?
I sell at a swap meet. I buy from several sources, usually a bunch of items in a lot. I sell about 500-700 items a day ranging from 50 cents to a dollar. I'm not being audited by the IRS nor am worried about it due to a return, but want to make sure I stand a chance against one.
So would I document exactly what kind of item sold, price, sales tax collected, day that the item sold, and price I got the item at? How would I get the price I got the item at if I got it in a box mixed in with other items that vary in price?
Also would I need additional documentation if I were to get a tax audit by state of CA?