Are you set up as a business? 3 3

[revat]

On 9/27/2024 at 11:39 AM, Aman619 said:

well, wouldn't the investment at current values, the 100K in this case, trigger a capital gain of $50K since you only paid 50K for them?  Doesn't this gain have to be reported?  or tax-wise, do you incur a capital gain  AFTER the company pays you back the 50K?  that sounds plausible..

in your statement, are "investment" the same as "loan"?

Investment not the same as loan

 inventory investment value at your cost basis (ideally with evidence/proof), and all the gain (after expenses) after final sale to customer is taxed.

i guess theoretically you could sell it to your store, but then you’d realize the gain now and pay tax now.  And then again later when sold again.  Seems like a lot of hassle for no obvious gain.  It’s just not so commonly done, though it might work out for specific situations.

 

I don’t know if you can loan inventory to yourself. 
 

you could theoretically consign to yourself, though I’m not sure what the advantage is, seems like you’re just creating an accounting headache.  
 

I’d say if you’re dealing with 50k-100k of inventory and starting a business you should talk to a real accountant in your state 

[jimjum12]

On 9/27/2024 at 2:39 PM, Aman619 said:

well, wouldn't the investment at current values, the 100K in this case, trigger a capital gain of $50K since you only paid 50K for them?  Doesn't this gain have to be reported?  or tax-wise, do you incur a capital gain  AFTER the company pays you back the 50K?  that sounds plausible..

in your statement, are "investment" the same as "loan"?

You "acquire" them from yourself at cost of goods. There is no profit unless something sells at a priofiit. . It is best to have receipts, otherwise you may need to discuss with an accountant. The bookkeeping isn't terribly complex, running chronological tallies of Sales, Purchases, Cost of Goods Inventory list and itemized Expenses pretty much does it. It's best to update at least weekly, as it can get unwieldy quick if you're doing any kins of volume.  GOD BLESS ... 

-jimbo(a friend of jesus)

[jimjum12]

On 9/27/2024 at 4:41 PM, revat said:

you could theoretically consign to yourself, though I’m not sure what the advantage is, seems like you’re just creating an accounting headache.

You may have to Incorporate for something like that.

 

On 9/27/2024 at 4:41 PM, revat said:

I’d say if you’re dealing with 50k-100k of inventory and starting a business you should talk to a real accountant in your state 

Licenses here start at 50 dollars for up to 50K in annual gross sales, and increase as that number increases, based on the end of the previous year's sales. It eventually becomes percentage based. My memory is fuzzy now due to my stroke, but I think the most was around $400 for the license in my best year. The license and any accounting or tax rep can be written off in my State, probably all of them. GOD BLESS ...

-jimbo(a friend of jesus)

[Aman619]

On 9/27/2024 at 4:41 PM, revat said:

Investment not the same as loan

 inventory investment value at your cost basis (ideally with evidence/proof), and all the gain (after expenses) after final sale to customer is taxed.

i guess theoretically you could sell it to your store, but then you’d realize the gain now and pay tax now.  And then again later when sold again.  Seems like a lot of hassle for no obvious gain.  It’s just not so commonly done, though it might work out for specific situations.

 

I don’t know if you can loan inventory to yourself. 
 

you could theoretically consign to yourself, though I’m not sure what the advantage is, seems like you’re just creating an accounting headache.  
 

I’d say if you’re dealing with 50k-100k of inventory and starting a business you should talk to a real accountant in your state 

thanx.  I just picked 100 and 50K at random.  Im not thinking of doing this... but at some point, who knows?