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Retirement Discussions / FIRE Wannabees
|Subject: Re: I am such a Wannabee!||Date: 2/27/2004 8:31 AM|
|Author: CTkaren||Number: 2018 of 5086|
The cost of goods sold is an expense charged off against your business income for the year. Unsold inventory is not an expense you get to charge off.
I continue to suggest that those who claim that unsold inventory can be used as an expense are mistaken.
I don't want to step into a can of worms here, but SP, you are right about how inventory is handled, and zsimpson, you did suggest the purchase of stock "as an tax saving" method to others---
At one time artists were only allowed to deduct the cost of the paint they actually used in a painting that was sold as an expense from their income from painting sales, (an impossible thing to determine), but I think that has been changed.
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