Paper Trail for Cash Purchases

[Megan Hirlehey]

Hi BP,

How do you create a paper trail for tax purposes when buying things (secondhand appliances, supplies, etc) off of sites like Craigslist where sellers usually require being paid in cash? Is a simple signed hand receipt enough of a record to claim the purchase on your taxes?

[Rachel H.]

@Megan Hirlehey You can always bring around a receipt book from your local office supply store for these types of transactions. As long as you have a receipt just in case you have to back up the purchase down the road. Hope that helps!