[bnorth]

Originally Posted by jcc6252

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

Talk to an accountant. The rules are different depending on where you live and there are different ways inventory is judged for tax use. Also if you travel and sell at shows you have to pay taxes based on that cities rates that also vary from place to place.