Auction Power Guide

Report totals.
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You do total sales and then total expenses on a schedule c for the year.
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The answers above are correct. Detail records need to be kept in the event of an audit, but only the totals are reported on the 1040.
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The totals from your good detailed records that you will need to have to correctly fill out your schedule C Profit or Loss From Business.
Schedule C and the SE of the 1040 federal income tax return read each line when you start at the top of the page on the schedule C for your self employed independent contractor business operation your name is fine your social security number is fine and your present home address can all be used for this purpose just do NOT try to make it complicated and read each line and word and understand what it says and do what it says and then you should NOT have any problem.
You can also find the line by line instructions for the schedule C by using the http://www.irs.gov website and using the search box for the schedule C 2010 Instructions for Schedule C (2010) 2010 Table of Contents Profit or Loss from Business

http://www.irs.gov/instructions/i1040sc/…

Specific Instructions

http://www.irs.gov/instructions/i1040sc/…

BUT GOOD detailed records are really necessary for your business operation to succeed.
For your 1040 Federal income tax reporting you would use the below enclosed information for this purpose.
Use the search box at http://www.irs.gov for Publications and Forms for the Self-Employed

http://www.irs.gov/businesses/small/arti…

# Form 1040, U.S. Individual Income Tax Return (PDF)
# Instructions for Form 1040, U.S. Individual Income Tax Return (PDF)
# Schedule C (Form 1040), Profit or Loss from Business (PDF)
# Instructions for Schedule C (Form 1040), Profit or Loss from Business (PDF)
# Schedule C-EZ (Form 1040), Net Profit from Business (PDF)
# Schedule SE (Form 1040), Self-Employment Tax (PDF)
# Instructions for Schedule SE (Form 1040), Self-Employment Tax (PDF)

Key words are good detailed records of all ordinary and necessary expenses of the business operation and a daily detailed mileage record or log of all business miles and all personal mileage that the vehicle is actually used for each purpose to help you determine your actual percentage of business use and in the event that you need the written records at some future time you would have them available to you.
All of your gross income from all sources of worldwide income will be reported on your correctly completed 1040 federal income tax return.
Using a receipt book to make a receipt for each time that any one pays you in any way or item or trade for the amount of $$ value that is received at that time and totaling the gross self employed income for the tax year with any other 1099-MISC income that is received after the end of the tax year and entering the total gross $$$ value amount on the schedule C line 1 GROSS receipts from your trade or business
In general, taxpayers may deduct the ordinary and necessary expenses for conducting a trade or business. An ordinary expense is an expense that is common and accepted in the taxpayer’s trade or business. A necessary expense is one that is appropriate for the business. Generally, an activity qualifies as a business if it is carried on with the reasonable expectation of earning a profit.
You would have to be sure that you handle your business deductions correctly for your business operation.
For instructions and forms go to the IRS.gov website and use the search box for publication 334 a very good place to start with examples.
Publication 463 Travel, Entertainment, Gift, and Car Expenses
Use the search box at the http://www.irs.gov website for Small Business and Self-Employed Tax Center
Filing Season Central is your one stop assistance center for filing your business returns. This includes Highlights of Tax Law Changes, Tax Tips, and more.
2 of the seven tax tips for starting a business enclosed below.
#4 Good records will help you ensure successful operation of your new business. You may choose any record keeping system suited to your business that clearly shows your income and expenses. Except in a few cases, the law does not require any special kind of records. However, the business you are in affects the type of records you need to keep for federal tax purposes.
#7 Visit the Business section of the IRS gov website for resources to assist entrepreneurs with starting and operating a new business. Go to the IRS gov website and use the search box for the below referenced material
*Starting A Business
*Operating A Business
*Closing A Business
*Publication 4591, Small Business Federal Tax Responsibilities (PDF 470.1K)

http://www.irs.gov/

http://access.wa.gov/business/taxes.aspx

Hope that you find the above enclosed information useful for your situation and good luck to you.
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To run the business – yes, you need to monitor each little activity. That’s what called "running a business". If you don’t know what’s going on how would you know what stock you are making a profit at, what items you are selling, etc. If you don’t do this, you won’t be very successful.
– yes, it can be a nightmare.

However, the IRS doesn’t kind about these details, they care about totals.
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what you report to IRS is a total of the year’s income, however it is made, the purchases you made for resale, and your expenses for the year, on Sch C
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