question about reselling firewood

[brandonppr]

I am wanting to sell wood bundles on my website. I have a large customer base that is very close and would like to take advantage of that and give this a shot. The plan is to buy from locals and resale as bundles.

Would you ask the locals to write a receipt when you purchase from them?

[Gilmore.Landscaping]

Around here most people buy it by the Cord or Face Cord... usually this means its dumped in your driveway and you have to stack it. To me bundles are always very expensive and are only a last resort when your camping or something.

[Landscape Poet]

Originally Posted by brandonppr

Would you ask the locals to write a receipt when you purchase from them?

I would if you are a legitimate business that pays taxes. The reason is simple. You will show income from your sales...if you do not have proof that your had a cost associated with it when the IRS comes knocking....that would be considered pure profit and taxed as such. With the receipt you would have the ability to deduct YOUR purchase price as a expense of doing business just like any other supply.

[brandonppr]

Originally Posted by Gilmore.Landscaping

Around here most people buy it by the Cord or Face Cord... usually this means its dumped in your driveway and you have to stack it. To me bundles are always very expensive and are only a last resort when your camping or something.

I want to give it a shot. I think I can sell it and only one way to find out. Worst case, I'll just use the wood myself.

Originally Posted by Landscape Poet

I would if you are a legitimate business that pays taxes. The reason is simple. You will show income from your sales...if you do not have proof that your had a cost associated with it when the IRS comes knocking....that would be considered pure profit and taxed as such. With the receipt you would have the ability to deduct YOUR purchase price as a expense of doing business just like any other supply.

Makes sense, and yes I have a legitimate business that pays taxes. I'll make sure I get some sort of receipt when I purchase my supply.

[mtdenyer]

In some states you MUST sell it in cord measurements. That is the case here in Florida. Even if you sell by the bundle, I would put it in a cord or face cord measurement. You could say 1/15th face cord bundle, or something to that affect. Most states list particular laws like that in their licensing and permitting pages on their websites.