The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies

URL:  http://boards.fool.com/bluegrits-ltltltyou-really-cant-make-a-30282277.aspx

Subject:  Re: Inventory is income? Date:  9/25/2012  12:18 PM
Author:  JAFO31 Number:  116662 of 121177

BlueGrits:

<<<You really can't make a comparison to a house.>>>

"I'm not sure why would there be a difference -- both the home and the purchased parts are acquired with the intent of later resale so it would seem one that both (using your approach) would be taxable income if not sold during the year of acquisition."

The house is acquired for the purpose of occupancy, presumably. The average person is not in the business of selling homes. The plumber is in the business of selling parts.

Regards, JAFO
(subject to correction by any of the resident pros)
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us