Quote:
Originally Posted by raulus
The only part of your statement that I’m not following is your assertion that buying inventory is a deductible expense for a dealer.
Inventory is not deductible when a dealer buys it. It’s only deductible as cost of goods sold when the dealer sells it.
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I was unclear here, I apologize. You can offset any profits with deductible expenses to negate any profit as a business, inclusive of COGS, you wouldn't pay capital gains on a single transaction.
So if he is a business taxes are calculated on profits after allowable expenses, which he doesn't appear to be.