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|Subject: Re: I am such a Wannabee!||Date: 2/17/2004 1:51 PM|
|Author: SeattlePioneer||Number: 1945 of 5069|
<<I figured his number was coming up soon and we needed someplace to get some tax credits. I started a small business selling stuff on Ebay with the thoughts that if I put some money into inventory, it would be that much less that we had to pay taxes on, and I could always sell it the next year and make the money back when we didn't have a large single year income.
Have you looked at this carefully?
While you can deduct the cost of goods sold as a business expense once they are sold, the cost of merchandise held as inventory cannot be deducted.
That's my understanding anyway. Check out Part III of Schedule C.
I'd be glad to have you prove me wrong.
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