tax question

[secretsquirrel]

The place I work for will only carry so much inventory. Any more than normal stock they trash. This is non parishable items. Could I arrange something with the accounting deptment buy the items for pennys on the dollar instead of them throwing the stuff away. I ll store it to be sold thourght other means. Now would I pay taxes on the value of the item as its in my inventory or pay taxes on the price that I paid for it. just wondering if this is a venture thats worth it.

 

[Tobacco Giant]

The place I work for will only carry so much inventory. Any more than normal stock they trash. This is non parishable items. Could I arrange something with the accounting deptment buy the items for pennys on the dollar instead of them throwing the stuff away. I ll store it to be sold thourght other means. Now would I pay taxes on the value of the item as its in my inventory or pay taxes on the price that I paid for it. just wondering if this is a venture thats worth it.

Depends. If your company sells it to you at a loss and claims those losses, you'll have to keep it as "inventory" at the price you buy it and pay taxes on whatever profit you make.

If your company does not take a loss and claims no profit/loss as this can be viewed as a related party transaction, you should be able to keep it at inventory at the price your employer paid and only pay taxes on the difference between your selling price and the price your employer had it in inventory as.

 

[dpricenator]

or you could just craigs list it and keep the cash

 

[Tobacco Giant]

or you could just craigs list it and keep the cash

Probably the best option.

 

[cvm4]

What business do you work for where they'll throw away good items? Just curious...

 

[secretsquirrel]

custom testing equipment. switches, relays, and pnematic valves are normally whats dispose of

 

[funkejj]

Ebay!!!