A Tip on Taxes: Decorated Inventory Versus Blanks

Should a business list its inventory of decorated products?

First and foremost, you must contact your tax professional to get the exact right answer for your particular business and circumstances. I am not a CPA or financial planner. I am fortunate to have a dad who was a CPA for 25 years, but he is retired, so again consult your CPA.

With that being said — so you have a foundation of what to talk to your CPA about — the tax law states that you are only able to put down the actual physical costs. So that means the blank, and the material, no labor or any other overhead needs to be listed. Even if you put costs down for the decoration material, you could be asked to prove where you came up with that number. My recommendation is to not list inventory decorated products.

Editor’s note: These and other questions are answered and discussed by Our Success Group regularly as a way to continue to commune with the OSG family during the COVID-19 pandemic. You can find these live videos on

Aaron Montgomery

Aaron Montgomery

Our Success Group

Aaron Montgomery is certified by New York Times best-selling author Jack Canfield as a Success Principles Trainer and has nearly 30 years of experience providing essential support to small businesses. His company, Our Success Group, assists with setting and reaching goals, creating a solid business plan, knowing their numbers for a better pricing strategy, and establishing a customer-focused approach while devising a targeted marketing strategy. He is the author of the business foundation book ‘The FUNdamentals of Business Success.’ He is the Co-Founder of a facilitated 6-month Mastermind collective called Radical Goal-Getters. You can also find him hosting a weekly show called Small Business Saturdays and co-hosting the 2 Regular Guys Podcast.

View all articles by Aaron Montgomery   Visit Website

Related Articles

Back to top button