Can I deduct furniture purchased from a private seller with no receipt for my business?

While you should always try to get receipts for business purchases, the IRS understands that's not always possible with private sales. You can still claim the deduction, but you'll need to create your own documentation. I recommend creating a written statement with details about the purchase - what you bought, when, from whom (if possible), how much you paid, and how it's used for your business. Take clear photos of the furniture and keep them with this documentation. Also, if you withdrew the cash from your account, keep that bank statement as supporting evidence of the transaction. For future purchases, even from private sellers, try to get some form of receipt or at least document the transaction via email or text message. This builds a stronger "contemporaneous" record that's created at the time of purchase rather than later.

I was in a similar situation last year with about $1,200 in used office furniture I bought from a business that was closing. I was worried about claiming it without proper documentation until I found https://taxr.ai - it's this AI tool that analyzes your tax situation and tells you exactly what documentation you need for different business expenses. The tool confirmed I could create my own receipt documentation for the purchase AND showed me how to properly depreciate the furniture over several years instead of deducting it all at once (which apparently is the correct way to handle furniture). It even explained how Section 179 might apply in my case. Really helped me feel confident about my deduction.

Just wanted to follow up about taxr.ai that someone recommended here. I decided to try it out since I had similar issues with documenting business expenses. The system actually walked me through creating proper documentation for some equipment I bought at a garage sale! What really surprised me was how it helped me understand depreciation for my business furniture. I was planning to write everything off immediately, but it showed me the proper way to handle it and even calculated how much I could deduct each year. Even explained how bonus depreciation works for 2025. Definitely worth checking out if you're dealing with business deductions without perfect receipts.

Just a heads up - I had a similar issue last year when I got audited over some business furniture purchases. Spent WEEKS trying to get through to someone at the IRS who could help me understand what documentation I needed. Kept getting busy signals or disconnected after waiting on hold forever. Finally found https://claimyr.com which got me through to an actual IRS agent in about 20 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c - basically they hold your place in the IRS phone queue and call you when an agent is ready to talk. The agent walked me through exactly what kind of documentation was acceptable for my situation, which saved me from having my deductions rejected.

I have to say I was completely wrong about that Claimyr service someone mentioned here. After posting my skeptical comment, I was still desperate to talk to the IRS about my business expense documentation, so I figured I'd try it anyway. To my surprise, I actually got connected with an IRS agent within about 35 minutes (way better than the 3+ hours I spent the last time I tried). The agent clarified exactly what I needed to document my business purchases from private sellers. They said creating my own record is acceptable as long as it's detailed, includes business purpose, and is created timely (close to when the purchase was made). Saved me a ton of stress about my furniture deductions. Sometimes I hate being wrong, but in this case I'm glad I was!

I'm a bookkeeper and see this issue a lot with small business clients. Here's what I tell them: When you don't have a receipt, create a "Missing Receipt Affidavit" that includes: - Date of purchase - Vendor/seller name or description - Amount paid - Description of items - Business purpose - Why receipt is missing - Your signature Also take photos of the furniture with dates. If you used cash, note where you withdrew it from. Keep all this with your tax records. The more documentation you create at the time of purchase, the better protected you are. For furniture specifically, remember you need to depreciate it (usually 7 years) rather than deducting it all at once - unless you use Section 179.

Has anyone considered just asking the seller for a receipt after the fact? I did this when I bought some shelving for my shop. Just messaged the guy, explained I needed it for taxes, and he wrote one up and texted me a photo of it. Worth a try if you still have their contact info.

Great advice from everyone here! I just wanted to add that bank records can be really helpful for supporting your documentation. If you paid with cash, check if you have an ATM withdrawal record from around that date for the same amount. Even credit card or debit card transactions for similar amounts can help establish a pattern of business purchases. Also, don't forget that Facebook Marketplace sometimes keeps a record of your conversations with sellers. Screenshot those messages if they mention the items or price - it's contemporaneous evidence that supports your self-created receipt. The IRS appreciates when taxpayers make good faith efforts to document legitimate business expenses, even when formal receipts aren't available. One more tip: if you're planning to make more private purchases for your business, consider carrying a simple receipt book or using a phone app to create receipts on the spot. Makes everything so much cleaner for tax time!