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Paying taxes on scrapping

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    webuyselltradestuff's Avatar
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    Just keep your receipts where you take your scrap in and then expense receipts. Make sure you have at least an LLC if in the US and at the end of the year get your business taxes done at H&R Block. I end up paying ab out $300-400 for the business taxes and then my personal...easy cheesy. If you are doing significant business then I would suggest doing them quarterly or monthly if large where you can submit the taxes owed along the way. In my case, my "tax bill" once I whip out ALL those expenses I can write off just goes against the taxes my wife has already sent in from her W2 job...ie we get a much smaller refund etc. It works out right not at my level.

    PROFIT is made when you BUY/ACQUIRE NOT when you sell

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