Profit on inventory

Submitted by duckfeathers on 4/3/05 at 7:07 PM. ( )

Much to my surprise I found that I had a tax liability due to profit made on forms, etc, that were purchased in years prior and used this past year. It seems that taxidermy supplies are better than money in the bank these days.

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WHY would you ever claim an inventory?

This response submitted by George on 4/3/05 at 10:22 PM. ( )

You need to attend one of our business seminars at the shows. Remember this phrase next year when your tax preparer asks you that dumbass question about inventory. "Sir or Madam, I own an operate a SERVICE INDUSTRY SHOP and I have no inventory. The supplies I have on hand were committed to meet my customers demands and any residuals I have will be used on other customers work. I HAVE NO INVENTORY."

The ONLY time you have any inventory is if you are a supplier and intend to sell those supplies to someone else.

Thanks George

This response submitted by duckfeathers on 4/4/05 at 12:03 PM. ( )

It has always paid me to pay a "bean counter". Sometimes I don't agree but what do I know. But your correct (as always), you've got to keep learning and getting educated.

LOL, I pay one too

This response submitted by George on 4/4/05 at 3:38 PM. ( )

Last thing I need is to fight with the IRS, so when Archie Phillips explained that to me 20 years ago, I never forgot. And it's sure saved me a lot of mental anguish as well.

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