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amerovingian t1_j1gpwgp wrote

Reply to comment by No-Reach-9173 in IRS delays rule change for people who get paid on Venmo, Etsy, Airbnb and other apps by TerpFlacco

That seems doable. What are acceptable forms of documentation?

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danester1 t1_j1gqb4s wrote

Probably a record of receipts from whatever vendor you have. You should have a transfer history in venmo/PayPal/cashapp that will show you who paid you, how much they paid you, and vice versa. Not sure what else you’d be able to produce.

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amerovingian t1_j1gsszo wrote

Do you need to print that out or just screenshots will do?

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danester1 t1_j1gta4m wrote

Since the rules haven’t gone into effect yet I wouldn’t worry about it, but if/when they do, I would make sure to mark all transactions with notes describing what they’re for, so you can sort them later.

Then if you want you can print out the receipts but I’m not really sure that would be necessary unless it specifies on your tax forms that you need to. I’d have to look at mine to see and I don’t have them on hand.

They really should only require strict itemization for auditing purposes, but I’m not an accountant or even in a tangentially financial field so don’t take my word for it.

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No-Reach-9173 t1_j1gv6ij wrote

The other poster has the right answers for you.

You will need hard copies if you get audited it's your choice if you want to have it all together in case you get audited to make future you life a bit easier or not.

The only real thing to remember is you can not carry a loss this way so if you sell a $100 item for $50 you can only deduct 50. If what you are doing is complex enough that not carrying those losses matters you should set up a "business".

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