Hello, I sell online like eBay and amazon ect for someone that buys out closeouts and such. My question is, if I am selling these items for him and he wants cash on the items I sold. After I take my percent and minus the fees and shipping cost, I don't understand how I can give him cash as then it is not documented and then how can I pay taxes on it? Thanks so much
USA Selling on eBay
- Thread starter ksap246
- Start date
When dealing with cash - it's all about proper documentation. You should be documenting each item you sold, its selling price, sellers percentage & all other fees included with the sale of each item. Then have a column for the "net proceeds" (which ultimately will go to the person you're selling for) for each item. You'd then want to total up all the "net proceeds" each week, month,etc. which will give you the paper trail needed for your tax purposes and also give you backup for when you give this person a 1099-MISC as the end of each year. Does that make sense?