The best alternative to a lack of receipts is a "diary" kept contemporaneously. Since you don't have that, you make a plausible guestimate of what you paid (including any related expenses). As long as you don't guess $1,000 paid for an item you just sold for $1, your estimates, assuming they are plausible, will tend to be accepted. The IRS can hardly "prove", or even suggest, you paid $0.
Last edited by GeoPoto; 03-09-2024 at 01:42 PM.
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