Forum
»
any tax accountants out there on the misc?
- Results 1 to 6 of 6
-
Page 1 of 1
05-13-2021, 11:47 PM
-
#1
- iwant2beswole
- ayyyy lmao
-
- iwant2beswole
- ayyyy lmao
- Join Date: Jan 2013
- Location: Seattle, Washington, United States
- Posts: 19,879
- Rep Power: 104695
-
-
any tax accountants out there on the misc?
I have a side hustle, where I buy inventory to sell, but I hold the inventory for a few months before selling while I wait for prices to go up. There are also a fair amount of expenses and deductions that I incur through the process of building inventory.
My total revenue for the 2020 year ends up being less than my expenses, but I wouldn't say I'm operating at a loss. am I reporting that correctly?
My total revenue for the 2020 year ends up being less than my expenses, but I wouldn't say I'm operating at a loss. am I reporting that correctly?
watchout your comments boyo ↓
05-13-2021, 11:50 PM
-
#2
- Caldef
- Registered User
-
- Caldef
- Registered User
- Join Date: Oct 2019
- Age: 56
- Posts: 2,212
- Rep Power: 67216
-
-
Originally Posted By iwant2beswole⏩
Are ypu recording an adjustment for your closing stock on hand? That should be recorded at cost value, as a revenue item..I have a side hustle, where I buy inventory to sell, but I hold the inventory for a few months before selling while I wait for prices to go up. There are also a fair amount of expenses and deductions that I can use.
My total revenue for the 2020 year ends up being less than my expenses. am I reporting that correctly?
My total revenue for the 2020 year ends up being less than my expenses. am I reporting that correctly?
Otherwise I'd suggest you find a new side hustle as if your expenses really exceed your revenues, you're losing money.
05-14-2021, 09:05 AM
-
#3
- iwant2beswole
- ayyyy lmao
-
- iwant2beswole
- ayyyy lmao
- Join Date: Jan 2013
- Location: Seattle, Washington, United States
- Posts: 19,879
- Rep Power: 104695
-
-
morning bump because am potato
my expenses (cost of goods + cost to acquire said goods) are higher than revenue because I haven't sold majority of inventory yet. once I sell everything I will be profitable
my expenses (cost of goods + cost to acquire said goods) are higher than revenue because I haven't sold majority of inventory yet. once I sell everything I will be profitable
watchout your comments boyo ↓
05-14-2021, 09:17 AM
-
#4
- Glutebrahhh
- Glutes of Peace
-
- Glutebrahhh
- Glutes of Peace
- Join Date: Sep 2020
- Posts: 4,079
- Rep Power: 16807
-
-
Originally Posted By iwant2beswole⏩
You should probably be reporting your losses so you can carry them over to offset your profit in the year you'll incur the tax.morning bump because am potato
my expenses (cost of goods + cost to acquire said goods) are higher than revenue because I haven't sold majority of inventory yet. once I sell everything I will be profitable
my expenses (cost of goods + cost to acquire said goods) are higher than revenue because I haven't sold majority of inventory yet. once I sell everything I will be profitable
05-14-2021, 09:20 AM
-
#5
- nrowles
- Registered User
-
- nrowles
- Registered User
- Join Date: Jun 2012
- Location: Pennsylvania, United States
- Age: 43
- Posts: 2,857
- Rep Power: 23063
-
-
The rules are so fukin confusing. They say if you keep track of your inventory you are not permitted to expense the inventory on hand until it is actually sold. This matches the revenues with costs. Unless it is a larger more material amount we're talking about I generally just expense all COGS for tax purposes and don't track the inventory.
Bookmarks
-
- Digg
-
- del.icio.us
-
- StumbleUpon
-
-
Posting Permissions
- You may not post new threads
- You may not post replies
- You may not post attachments
- You may not edit your posts