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Shrevvy

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    New Tax Reporting ($600 Threshold per year) and Consignments

    in Comics General

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    On 2/1/2022 at 12:05 PM, 70s80sTimeMachine said:

    Say you land on the Schedule C with multiple income related streams (not just because of comics/1099K or anything comic related)  If you had another income source that had to be denoted in the Schedule C as well and you were carrying comic book inventory annually i.e. denoting your comic book purchases as costs of goods sold in Schedule C Part III or Part V; would this not then effectively reduce your total income tax liability for that particular year by at least delaying well it into the future until you sold said comic book inventory?

     

     

    If I understand what you are asking, the answer is "no." Inventory is not a cost to offset revenue. Inventory is an asset. Buying inventory is not cost of goods sold until the product is actually sold.