Are Craigslist in-person, cash purchases tax deductible?

[slugg]

I recently bought two computer monitors on Craigslist. I could probably have the seller make me a receipt; he seems like a cool guy. Can I deduct this? I've only ever claimed things that have actual retail receipts, and Google has failed me in finding a clear answer.

Thank you, ATOT

 

[BoomerD]

How would those be tax deductible?

(they're not...even if you purchased them from a charitable organization...beyond their "fair market value."

 

[Bignate603]

How would those be tax deductible?

(they're not...even if you purchased them from a charitable organization...beyond their "fair market value."

That's what I'm thinking.

 

[slugg]

That's what I figured. Since I'm not a tax expert, I figured there may have been a way to deduct it. It is for business purposes, after all.

Thanks

 

[Ns1]

How would those be tax deductible?

If you're a business....I would have his ass write you a receipt.

If you're not a business then no lol

 

[Ns1]

It is for business purposes, after all.

Business expense 100%

The problem you will have is if you ever get audited, cuz hand written receipts are full of LOL

 

[slugg]

I do freelance software development as a 1099 independent contractor...

 

[rgwalt]

When you "claim a retail receipt", typically you are only claiming the sales tax, unless you know something I don't. So, in this case, you didn't pay sales tax on the monitors... So, you can't claim them on your taxes.

Edit: Missed that it is a business expense.

 

[Ns1]

When you "claim a retail receipt", typically you are only claiming the sales tax, unless you know something I don't. So, in this case, you didn't pay sales tax on the monitors... So, you can't claim them on your taxes.

you know nothing about business.

Taxes are on earnings, earnings are revenue less expenses.

2 monitors @ 50 each = expense

//edit

i see that you missed that it was a business expense =P

 

[slugg]

So the question here is whether or not this cash purchase can be written off as a business expense...

 

[Squisher]

I would think a hand written receipt plus a printout of the ad would be sufficient.

 

[Squisher]

http://www.irs.gov/pub/irs-pdf/p535.pdf

 

[fuzzybabybunny]

If it's a business expense then it is cash deductible.

Creating a receipt is very simple. Take cash out of your business account. Bring a piece of paper and a pen with you to the transaction and write up a receipt.

Include:

Date at Top
Seller's Name, Phone, perhaps Address
Buyer's Name, Phone, Address

Draw a small table:

Item Name - Quantity - Price

Put a Total down at the bottom.

Paid with Cash ______________ (amount)
Seller's Signature, Buyer's Signature

Done. Save the receipt for your records or take a photo of it to store digitally.

 

[Ns1]

So the question here is whether or not this cash purchase can be written off as a business expense...

Yes 100%.

 

[slugg]

Perfect. Thanks, guys.

 

[edro]

You could easily fake the receipt as long as you have his contact info.
The IRS is not going to care about $50 in business expenses.

 

[slugg]

You could easily fake the receipt as long as you have his contact info.
The IRS is not going to care about $50 in business expenses.

$400.

 

[BoomerD]

That's what I figured. Since I'm not a tax expert, I figured there may have been a way to deduct it. It is for business purposes, after all.

Thanks

You left out the "It is for business purposes, after all." in your OP...

Yes, you should have gotten a receipt. Talk to your CPA or tax adviser about how to deal with this.