Are used items I purchased off Craigslist for my business tax deductible?

[dn1999ttc]

If so, if I did not get a receipt, can I find the person that sold them to me to give me a receipt now?

[ErnieS0]

It depends whether you are an employee or self-employed. You can no longer write employee expenses on your federal taxes. Some states still allow it.

Self-employed persons can deduct any ordinary and necessary business expenses. Items purchased on Craigslist qualify if they fit the definition.

You can write off the amount you paid. 

Get a receipt now. It’s better to have one. The IRS can disallow any deduction without a receipt during an audit.

[dn1999ttc]

Thank you for the quick response!! Will a hand written receipt from the person I purchased from suffice? Does their name and contact info need to be on it?

[ErnieS0]

A handwritten note will suffice. The seller’s name should be on it.

IRS says your supporting documents should identify the payee, the amount paid, proof of payment, the date incurred, and include a description of the item to show that the amount was for purchases. 

If the receipt doesn’t include all the information, you can write it in yourself.

Documents for purchases include the following:

• Canceled checks or other documents reflecting proof of payment/electronic funds transferred
• Cash register tape receipts
• Credit card receipts and statements
• Invoices

Note: A combination of supporting documents may be needed to substantiate all elements of the purchase.

What kind of records should I keep