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RevolutionaryBill285 OP t1_ja8z2nm wrote

Reply to comment by nozzery in Forgot to include side hustle income on taxes. Advice please? by RevolutionaryBill285

I think (correct me if I’m wrong) the 3 year rule is only for getting a refund from the irs, right? And the problem with deducting expenses such as what I originally paid for the items is that I don’t have a huge portion of the receipts for those items. Do I have to just declare all of what I received as a payment at that point?

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nozzery t1_ja8zlo2 wrote

You do not need receipts. Records are in your email, sale notices from eBay, etc. It's going to be an hour or two of work for you to put it all in a spreadsheet. Suck it up and do that, you'll thank yourself later if you ever get audited. You need to track cost basis for each sale.

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RevolutionaryBill285 OP t1_ja93azm wrote

That’s part of the problem, I did a sort of spring cleaning of my email a while back and don’t have a lot of those purchase confirmations :/

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shadracko t1_ja93lbj wrote

Nor does the record of past sales exist in your eBay account?

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RevolutionaryBill285 OP t1_ja95fh7 wrote

The sales of items I sold are on record, but the prices I paid for each item BEFORE selling are what’s lost to the void

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nozzery t1_ja96ts1 wrote

Look back through credit card statements. You are also allowed to estimate. Don't just throw up your hands and pay unnecessary taxes

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RevolutionaryBill285 OP t1_ja99wwb wrote

Okay, I’ll try the best to dig through my bank statements and estimate some things. Appreciate your help!

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IHadTacosYesterday t1_jaac9ka wrote

> an hour or two of work for you to put it all in a spreadsheet

More like multiple weekends of hell

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nozzery t1_jadqvj9 wrote

Try coming unprepared to an audit, and see how that goes then.

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Phylah t1_jab2zk3 wrote

Honestly call a tax lawyer, they may help ease your mind. I believe they can only go beyond the 3 years if there was intent…but again: call ;)

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