The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: Inventory is income?||Date: 9/25/2012 12:52 PM|
|Author: Jeanwa||Number: 116665 of 119693|
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.
A house is purchased to live in....then sell it.
Inventory is purchased only to resell it.
Houses are be inventory to a person that only purchases and sells houses with out use between the time they are purchased and the time they sell.
|Copyright 1996-2013 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|