Discussion:Remaining Inventory - Business Closed

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Revision as of 16:53, 9 April 2009

Discussion Forum Index --> Basic Tax Questions --> Remaining Inventory - Business Closed
Discussion Forum Index --> Tax Questions --> Remaining Inventory - Business Closed

Rgtaxservice (talk|edits) said:

9 April 2009
The threads I've read offer conflicting opinions as to whether or not any remaining inventory can be written off when the business ceases operations.

My client was into selling candles for a few years. She was always profitable with it and it wasn't hobby income. In Jan/Feb of 2008, she purchased about $700 worth of candles from her supplier with the intent of selling them. She ceased her business operation in late Feb. The candles, over a hundred of them, are collecting dust in her garage. These candles are destined for a landfill. She had no other expenses in '08.

Some threads state that the inventory can be written off and others state otherwise. I'm of the thought that these items would become personal property and any disposition, other than sale, would not be deductible.

Can anyone shed any light on this?

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