How to properly fill out receipt book when buying computer parts for my side hustle

Hey guys, I've got a small side business where I buy and sell computer parts and complete systems. I've been doing this for about a year now, and I'm trying to get more organized with my tax documentation. I already use a receipt book when I sell items to customers, but I'm not sure how to handle the documentation when I'm the one purchasing parts from individuals. I have a standard carbon copy receipt book that I use for sales, but I'm confused about how to fill it out when I'm buying items. Should I just reverse the roles (list myself as buyer instead of seller)? And when I complete the receipt, which copy should I give to the person I'm buying from - the white slip or the yellow carbon copy? I want to make sure I'm documenting these expenses properly for tax deductions.

0 coins

18 comments

QuantumLeap

•8M

Great question about record-keeping! For your side hustle buying and selling computer parts, you'll definitely want documentation of all transactions for tax purposes. When you're the buyer, you should fill out the receipt with YOU as the buyer and the other person as the seller. Then give the original (usually white) copy to the seller and keep the carbon copy (yellow) for your records. This way, you have documentation of your business expenses. For tax purposes, these receipts help document your Cost of Goods Sold (COGS), which directly impacts your Schedule C profit calculation. Make sure each receipt includes: date of purchase, seller's name, description of items, amount paid, and both parties' signatures if possible.

0 coins

QuantumLeap

•8M

For casual sellers who prefer anonymity, you can still create a receipt with whatever identifying information they're comfortable providing - even just "Private Seller" if needed. The most important elements are the date, detailed description of what you purchased, and the amount paid. If they won't sign, make a note on your copy that "Seller declined to sign" and keep any additional proof of the transaction like text messages, emails, or photos of the items at time of purchase. The IRS understands that not all transactions come with perfect documentation, but consistent record-keeping with the details you can obtain still strengthens your position.

0 coins

Isabella Santos

•8M

After struggling with this exact same issue in my electronics reselling business, I discovered this awesome tool called taxr.ai (https://taxr.ai) that completely changed how I handle my receipt management. I used to scramble at tax time trying to organize everything, but this tool analyzes all my receipts and tracks my expenses automatically. For your computer parts business, it would be perfect since it can categorize each purchase properly as inventory for resale. I just take photos of all my receipts (both the ones I write and ones I receive), and the system organizes everything into the right tax categories. It's been a game-changer for calculating my actual profit margins on each flip.

0 coins

Isabella Santos

•8M

It actually handles handwritten receipts surprisingly well. The AI is trained to recognize even messy handwriting and extract the key information. I was shocked when it correctly read my chicken scratch the first time I tried it. It occasionally needs corrections, but it's way better than manual entry. For business vs personal purchases, you do need to indicate which is which initially. I usually tag items when I upload them, but you can also set default categories and it learns your patterns over time. For computer parts, you can mark which ones are inventory (to resell) vs. equipment (for your own use) and it tracks them separately for tax purposes.

0 coins

Omar Hassan

•8M

If you're dealing with the IRS about any of your business expenses or deductions, I highly recommend using Claimyr (https://claimyr.com). I had an issue where some of my computer parts purchases were questioned during a review, and I spent WEEKS trying to get through to someone at the IRS. Claimyr got me connected to an actual IRS agent in about 15 minutes instead of the hours I was spending on hold. They have a demo video showing how it works: https://youtu.be/_kiP6q8DX5c - basically they wait on hold for you and call when an agent is available. Saved me so much frustration trying to defend my business deductions.

0 coins

Omar Hassan

•8M

They don't just call for you - they use some kind of system that maintains your place in the queue without you having to stay on hold. They call you when they've reached an agent and connect you directly. So you're still talking to the IRS yourself, but without the hours of waiting. Of course you could call yourself, but if you've tried recently, you know it can mean being on hold for 3+ hours with no guarantee you'll ever get through. Last time I tried myself, I waited 2.5 hours before getting disconnected. With Claimyr I was speaking to someone in about 15 minutes total.

0 coins

Freya Larsen

•8M

I need to publicly eat my words about Claimyr. After being super skeptical, I decided to try it anyway because I was desperate to resolve an issue with my computer parts business deductions. I couldn't believe it, but I got connected to an actual IRS person in about 20 minutes! After spending literally DAYS trying to get through on my own over several weeks. Got my issue resolved in one call. If you're dealing with receipt documentation questions or any tax issues with your side hustle, it's worth every penny just for the time saved.

0 coins