I guess they are on to this trick: "Hey, I made $4000 in profit this year. Instead of getting taxed on that as income, I'll just buy $4000 of inventory and not pay taxes on the income."
It might be prudent to discuss this issue with your accountant as the State and Federal taxation laws vary and depend on whether you are a Sole Proprietor, Partnership,Corporation or LLC.
This clears some things up but then again also leads to more questions lol. The fact that you can get taxed on your inventory is bonkers to me. Especially when I consider that we've had some frames...
I guess they are on to this trick: "Hey, I made...
I guess they are on to this trick: "Hey, I made $4000 in profit this year. Instead of getting taxed on that as income, I'll just buy $4000 of inventory and not pay taxes on the income."
drk 05-01-2024, 07:17 PMI'm sure...