Taxes>bought a sizeable lot cash, all I have is a text for "receipt" showing price.

[bruklynprince]

Hello,

So i bought a huge lot of used/old electronics that needed repair that i thought were a quick repair/flip. The guys is good an i want to continue buying from him, inspects the stuff and lets you know what it needs or is broken. so far i found he his 90% on point and it takes a lot of time off my hands. He gives me monthly updates about incoming lots/devices 

I have receipts for all the stuff i used for repairs etc. just not for the broken laptops. any advice? I called the person recently asking him to prepare another load but told him to cancel since he wasnt able to proved me with a receipt for the old items and for the next set(lot of firewalls and macbooks) he would just give me a paper saying what he sold and how much but wont include his name or contact info. I want to continue doing this but dont want a tax headache going forward if this is going to be an issue. The devices are 3-4 years old and all needed parts and labor if that helps. 

Im working on getting my llc, maybe claim labor or something this year to help with anything else i can claim, but im keeping it simple for this year. cost of good minus what ever i put in and ebays crazy fees. 

I didn't think i would reach the taxable bracket but there were some personal iPads and phones sold that bumped me up, not worried about those since i can pull the receipts. 

[stainlessenginecovers]

It's simply up to you to determine the 'original cost' (divide quantity x total $ or however you see) and then you would have the 1 receipt from the XX amount of items to give to an Auditor of the IRS should you need to. In the meantime, you use the $$ amount that you came up with. 

[glgenterprise]

Yes, your accounting is up to you. Your cost of acquisition is what you paid for the lot from that seller attributed to the items as you see fit. Any additional parts or labor that you put into the items to prepare for sale is added to the COS. What the seller has for accounting is not your tax documentation.  Unless you are worried about items being bricked by the manufacturer as stolen, where and what they paid for them is none of your concern or business.

[luckythewinner]

I didn't think i would reach the taxable bracket

What do you believe the "taxable bracket" is? 

If you file a tax return, your income from eBay needs to be reported.

[dhbookds]

remember also, ebay can ask you for receipts for what you sell and if you don't have acceptable ones......they can terminate your account....  (I don't know what is acceptable)...........