How to claim cash made...
I live on Social Security Disability and don't file taxes at the end of the year as my income is so low and doesn't require me to. I don't have any additional income to report, no assets, etc...
During the solar eclipse here recently in the U.S., I realized that there was no eclipse glasses to be found anywhere. I found a local guy who had a mass stock of them. He dealt with everything in cash. I realized there was a rare opportunity for me to make a little extra money which I don't normally have or get a chance at.
I started buying these glasses from him at $5 each and then reselling them for whatever I could get for them. I literally stood out on a corner with a cardboard sign stating "eclipse glasses for sale" and started selling them for the next 4 or 5 days on the same corner. It was nothing official, no business license or anything of the like, and only lasted a few days. I would sell them at mixed amounts for whatever I could get for them until I ran out, and then would resupply myself with the money I just made on it by buying more glasses from him, all done in cash. I did this for the next couple of days until I was pretty much out of glasses on Sunday the day before the eclipse and didn't want to buy anymore from him. I didn't keep accurate records of all this, but ended up with about $10k in cash by the time all was said and done, give or take $2k. It was probably just over $10k in the couple of days I did it in profit.
I was never expecting things to take off the way it did and never expected to be able to sell that many glasses.
If I made $10k, then I had to do at least $15k in sales since I was buying them from him at $5 each pair of glasses and then selling them for at least $10 a pair. I sold 1600 pairs of glasses. I am really concerned to have all this extra money not expecting things to be as good as they were with sales of them standing on a street corner like that.
Hurricane Harvey hit immediately following in Texas and I ended up using at least half that money to go and help victims in the Hurricane. I ended up doing a donation drive, renting trucks, and getting supplies of emergency needs while down in the impacted areas for the Hurricane. I probably laid out at least $5,000 of this money to help them to cover costs of everything that was involved with getting two truck loads of supplies down to the impacted areas. The remainder of the money went to paying of a debt of a personal loan to someone, cover some small emergency immediate bills I couldn't get out from under without this money, and to get a motorcycle ($3,400 + accessories) since I haven't had any type of transportation for myself in most of my adult life.
I honestly have no idea how to file this money I made with the IRS. Do I need to report this as income somewhere specifically? How would I go about doing that?
If at least half of it went to helping hurricane victims instead of personally gaining from it, do I need to report that part of it? What do I do if I don't have receipts or anything to prove any of these transactions on the sales of the glasses other then going from memory on most of it now?
Any guidance or help is appreciated.
Last edited by Spirit : 10-08-2017 at 06:19 PM.