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How to get insurance for flea market?

What documentation for my flea market / swap meet business should I be making 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?

  • Answer:

    Your biggest recordkeeping will be a) inventories on 12/31 each year and accurate purchase records. Inventory is lumped into cost of goods sold, not item by item. (You would of course care which items you are selling at a profit, but the IRS doesn't.)

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you need to have your invoices that show your purchases, all the other expenses of doing this business, such as the fees for your booth at the flea market etc and usually the flea market promotor has a blanket sales tax license rather than each one having their own and you report to the promotor the sales you made for that day, pay him the sale tax and he includes it his report to pay the state you might go to www.irs.gov and request booklet 334 to help you with your questions

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