Quote:
Originally Posted by 6GOAT789
Why would the taxable income be $700?
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Because there is $100 profit per box sold, and you sold 7. You have to include your inventory left over as still having value.
Remember, this is for people who are dealers. (EDIT: hatchd beat me to the punch with the same answer)
Quote:
Originally Posted by 6GOAT789
As far as saying buying 10 but selling 7, why not just say buying 7 and selling 7?
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I was trying to establish through my hypothetical that inventory left over still has to be accounted for.