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filing out 1099k for tax purposes when my business was not so legal

Discussion in 'Ebay' started by nohnoh, May 20, 2015.

  1. nohnoh

    nohnoh Newbie

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    Does anyone have guidance on filling the 1099k forum? I purchased everything through taobao (chinese ebay/amazon) through a proxy service which then sends it to me in the united states.

    How do I go about writing off these deductions? Do I just write 'clothing' as expenses, or do they seek specifics like the brand name and such. And in terms of receipts, I pay the proxy service, would that be considered the receipt?
     
    Last edited: May 20, 2015
  2. toml3030

    toml3030 Elite Member

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    You write it off as cost of goods sold. You can be general in the filing itself but when/if you get audited, you need to have very good records of all your claied expenses. IRS wouldn't care who you paid for the goods you sold unless you were laundering money or doing other associated stuff.
     
  3. nohnoh

    nohnoh Newbie

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    I see, so its unlikely they will catch me for selling replicas. They are just more concerned but me not fudging my numbers.
     
  4. joeb1ow

    joeb1ow Regular Member

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  5. AgentKaiju

    AgentKaiju BANNED BANNED

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    The IRS doesn't care about what you buy or sell within reason. All they care about is honesty when it comes to finances.
     
  6. bronxbombers

    bronxbombers Junior Member

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    The IRS just wants their money. You could be running drugs across the border, and they'll be waiting on the other side with their hand out for their cut.

    As said before, keep good records in case of an audit, but otherwise just log them as COGS.
     
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  7. toml3030

    toml3030 Elite Member

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    IRS doesn't care if you sell replicas. That is not in their jurisdiction. What IRS WILL care about though, if you start opening 50 bank accounts because you keep getting banned from Paypal because you're selling replicas, because they'll think you're trying to launder money.