Tips

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 www.liveosg.com

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Aaron Montgomery

Aaron Montgomery is the co-founder of OurSuccessGroup.com. Its goal is to help 1,000+ businesses in 2020 reach their idea of success through training, community, and accountability. Aaron has 25+ years of experience with personalized products and small business development. You can also find Aaron co-hosting 2 Regular Guys podcast (www.2regularguys.com) He also has his own podcast channel and produces weekly live videos called Small Business Saturdays Series. New episodes are released smallbusinesssaturdayspodcast.com.

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