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URL:  http://boards.fool.com/the-cost-of-goods-sold-is-an-expense-charged-off-20396948.aspx

Subject:  Re: I am such a Wannabee! Date:  2/27/2004  8:31 AM
Author:  CTkaren Number:  2018 of 5056

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.

Karen
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