Purchasing inventory from Alibaba can be claimed as a legitimate business expense, provided that the items are utilized to generate income for your small business. For individuals working as 1099 contractors, it's advisable to use a 1099 tax calculator to help estimate your potential deductions accurately. To streamline your accounting process, it is crucial to maintain meticulous records of all purchases, including invoices and receipts. Additionally, ensure that the inventory you acquire directly contributes to your business operations and supports your overall objectives. This careful documentation will not only facilitate accurate tax reporting but also provide valuable insights into your business expenditures.
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