Tax Question
I have a question about determining taxable income from buying and selling cards. Here is a hypothetical scenario:
For 2014:
A) Beginning Inventory $30,000
B) Inventory Purchases $35,000
C) Ending Inventory $40,000
D) Inv. Sold (A+B-C) $25,000
E) Gross Sales $33,000
F) Expenses $ 3,000
Would I be responsible for $5,000 (E-D-F) in taxable income?
Or, would it be considered a loss for the year, since I finished the year with $10,000 more (C-A) in my inventory?
Thanks,
-Jim
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