I'm very sorry for this basic question, and hope I don't offend anyone here if this question does not belong here on this forum.
background. I just started selling used vehicle parts on ebay. I have been selling about 1000-2000$ per month into paypal.
The thing is, it's not 1000-2000$ in profit! heck, I probably pay out 300-600$ per month in ebay fees and shipping costs. I may buy a machine for 650$, and sell about 1000$. Selling $1000 on ebay and paypal, after fee's is approximately $825.00.
so i'm deeply concerned that it appears that I have made $1000.00 but in actuality, I have only "made" $175.00.
My main concern is how do I prove my main expense ( the amount I pay for a machine)? I do have a hand written bill of sale for several of the machines I bought, but they do not appear very official.
I'm afraid it appears like i'm selling much more than I really am, and I need to know what kind of documentation I need for Tax purposes.
Thank you very much for your time
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