How do I keep track of cash sales? I use square card reader for credit transactions. I don't make a lot of income throughout the year but I do a couple profitable yards sale annually. And I need to add to my adjusted gross income. How/where would I add this on a 1040? Thanks.
When you say profitable are you taking your basis into account? You would report these sales on Schedule D.
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Whether Schedule D applies depends on whether you owned the items for personal use/investment, or you sold them in connection with a trade or business (since you mentioned you accepted credit card transactions). For example, if you bought items specifically for resale, then the income was a business income. If you are unincorporated (no LLC or a corporation), then the income goes on Schedule C.
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You may want to file a Schedule C so you can deduct your expenses. I don't know if this is a business or just 2 yard sales a year. ALso, if you are just selling personal possessions, you probably do not have any gain. Discuss this with your tax preparer.
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