Storage Auctions
The Storage Locker => General Storage Auction Talk => Topic started by: luke on April 09, 2014, 03:42:53 PM
-
Obviously, whoever buys and sells storage lockers for a living, is operating a retail business (Selling and buying merchandise)
The part I'm having trouble with is this..
Say I buy a storage unit for $1000
So my Beginning Inventory is $1000
I sell say $1500 dollars worth of that inventory (in which it might be say 75% of the locker) but that in no way means my ending inventory is $250.. as the remaining 25% might be either all the pristine items that I haven't found a value for yet, or perhaps all the garage sale stuff that might add up to $50 bucks.
How do you determine what your ending inventory is for that year, or do you just estimate that it's $250 remaining.. It's hard because, you're not buying specific items with a specific cost and estimate the cost of good sold to be $750.
If you get an audit, what will the IRS say. This is the only part that's guesswork, because the value is subjective.
-
As far as I'm concerned there is no left over inventory, it was all sold. Anything that might be left and then sells goes on next year's taxes as a sale.