Discussion:BI treat as Sec195?

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Discussion Forum Index --> Tax Questions --> BI treat as Sec195?

Dude7707 (talk|edits) said:

16 April 2006
T/P purchased Inventory for MaryKay Business end of 2004, no Sch C prepared. Now in 2005 marks on Sch C 1st year in Busn...can't have BI then so how would you treat this 3k of inventory? I would think her only option is to elect Sec195 and show as part of purchases. Or is there another option?

Jdugancpa (talk|edits) said:

16 April 2006
Why not add it to purchases?

Dude7707 (talk|edits) said:

16 April 2006
Because its a 2004 asset not a 2005 so that is why I was recommending they do the Sec195 since they can expense up to the 1st 5k, by your method it was not really 2005 purchases. Turns out this 3k was actual 2005 purchases so they are ok.

Thanks for your prompt reply.

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