Finance, Forex and Investments

Purchasing overseas items using cash - receipts?

How do I record this as an expense or cost of goods? I went to Asia and bought a lot of jewelry, from the local folks in the country side in India and Southeast Asia. These are things like golden trinkets, bracelets, buddhas and cat figurines, etc. Anyway, they obviously dont accept US $ check, so I had to buy it in cash, lots of cash. Some gave receipts (weird small ones, handwritten) and some didnt. Needless to say, I made a lot of money re-selling these items in the USA. Now its tax time. how do I show I bought these items overseas, when most dont have receipts?

Public Comments

1. When you pay cash, you should keep a journal of expenses. Use that journal. You said you made a lot of money. As long as you report that, the IRS shouldn't object. On the other hand, if you reported making very little, the IRS might be skeptical about accepting your journal or personal notes.