Yes Joe, in many states you are taxed on inventory. You're lucky, in
Arizona you aren't. Here in Maryland, where I live, you are. I've had
to participate in doing taxes on inventory for two different
corporations here in this state, one of which was a manufacturing firm I
was president of.
You cannot charge to cost of good sold, goods that were not sold.
That's fraud.
>>> "Joe Curry" <spitlist@gte.net> 06/24/03 01:17PM >>>
I didn't say you could "Write it off". I said it is considered "cost
of
goods sold" which reduces your tax burden.
If it doesn't sell it is then a "write-off". You can't deduct it as a
loss because you have already reduced your taxes when the inventory
was
purchased. But you are not taxed on inventory.
Joe
-----Original Message-----
From: spitfires-owner@autox.team.net
[mailto:spitfires-owner@autox.team.net] On Behalf Of Nolan Penney
Sent: Tuesday, June 24, 2003 9:57 AM
To: spitfires@autox.team.net; triumphs@autox.team.net
Subject: RE: Reproduction parts and limited runs?
You can write off or depreciate equipment, not inventory.
>>> "Joe Curry" <spitlist@gte.net> 06/24/03 12:12PM >>>
What state charges "Inventory Tax"? Inventory costs are part of the
cost of goods sold and are therefore a tax write-off not a tax burden.
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