In addition to what KM said... and without any contradiction to what
he said... I know many businesses pay property tax (separate from income
tax) on equipment and inventory. Sometimes our local retail stores go
short of goods just before doing the annual property tax inventory, and
stock is replenished soon thereafter. I paid local property taxes on
all my office equipment, and the local taxing authority had a different
schedule of depreciation than the County, the State, and the Feds.
So this is just ANOTHER tax affecting many small businesses. I would
hate to be a "cost accountant" in this day and age !
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Happy Trails.
======================= Richards / K8JHR =========================
On 9/16/2011 07:23, Kris Merschrod wrote:
For those not involved with this issue. If a company assembles radios but
does not sell them in that fiscal year, then the value of those unsold rigs
is considered an accumulated asset and the difference between cost and value
is taxed. The same appies to having more, say, inductors in your supply
room than you had at the beginning of the year.
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