Questions about wholesale transactions between dealers

Bayard1908

When dealers buy from each other at shows:

Is payment made in cash? If so, does the buying dealer get a receipt to establish a cost basis for tax purposes, or, are taxes "ignored" all the way around?

kranky

From my observations, sometimes they get an invoice, sometimes they simply write the buy price on the flip, sometimes they just remember what they paid and write it down later. Payment can be cash or check, more often by check.

jdimmick

More often by check at larger shows especially by the larger dealers, and cash at smaller local shows.

yellowkid

In most states transactions between dealers are exempt from sales tax.

TwoSides2aCoin

Buying is in the debit column
Selling is in the credit column
Profit is income and is taxable.
Wholesale buying is an expenditure
Wholesaling is not. It's quite simple.

... unless you're asking Longacre