Not offering up any actual tax or legal advice here, but the word on the street is that you can deduct the price you paid for the items sold from your revenue. The burden is on you to provide evidence of the price you paid in an audit. In the event of an audit, the evidence necessary would likely be receipts for the specific cards purchased and later sold. If you don't have such evidence/documentation, the IRS is likely to disallow these expenses and you will be taxed on the full amount (plus, interest and maybe penalties). What you might consider "redic" is what the IRS considers necessary to substantiate your claimed expenses.
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