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How does the annual inventory of retail items change the income taxes, (for non-depreciable items) in a small business (sole proprietorship, not a corp)?
Ie your company buys and resells widgets.
In 2010 you had 20000$ worth of widgets at tax time.
In 2011 you had 30000$ worth.
If everything else stays the same, what is the tax consequence of this change, in 2011?
I think this says the higher inventory provides a greater deduction.
Ie your company buys and resells widgets.
In 2010 you had 20000$ worth of widgets at tax time.
In 2011 you had 30000$ worth.
If everything else stays the same, what is the tax consequence of this change, in 2011?
I think this says the higher inventory provides a greater deduction.