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William's Arts / Crafts Business Blog

By William T Lasley, About.com Guide to Arts / Crafts Business since 1997

Bulk Buys, Taxes and Finances

Sunday February 1, 2004
"VISCIOUSSL" asks: "If you coordinate a bulk buy for materials, how do you handle the finances involved? For tax purposes, are you using the entire receipt, and also reporting the monies received from the buy? This is complicated to me. I would be concerned that on a large buy, that you would need to show the IRS (if audited) where the large sum of funds came from that were received from the other purchasers. Wouldn't the purchaser effectively be "Reselling" the goods?"

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