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Subject:  Re: Inventory is income? Date:  9/25/2012  12:18 PM
Author:  JAFO31 Number:  116662 of 127613


<<<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)
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