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-   -   Strange Question...Maybe. (http://www.firearmstalk.com/forums/f47/strange-question-maybe-64400/)

GarKeith 05-13-2012 06:37 PM

Strange Question...Maybe.
 
I am curious if all or a portion of firearms purchased by an FFL for inventory purpose would be tax deductible from profits like a normal business expense. I hope I am asking my question in a way that you all understand what I am trying to say, because i am confusing myself a little. :confused:

Run2trouble 05-13-2012 10:42 PM

I write off some ammo as advertising and have a few demo guns for customers to try. All that I can say is to check with your accountant.

wjnfirearms 05-13-2012 11:07 PM

Inventory is not tax deductable, per se. You do, however, list it on your Schedule C under "Cost of Goods Sold" and it is a legitimate business expense which goes to part of your costs of doing business. This can help offset profits.

One big thing that many in small business fail to realize that everything that you spend either promoting or conducting business, whether out of personal pocket or the business', should be recorded, receipts kept, and used as legitimate tax deductions. It often amazed me at what I could deduct during the course of my travels as I'm always promoting the business. Having a wife who is an accomplished tax professional and book keeper helps, though. ;) It will be advantageous to get established with someone that really knows the ropes and you'll find that to be a major asset to you financially. One caveat. Just because someone's a CPA does not mean that they are extremely well versed in all the ins & outs of the tax code. The one time someone screwed up my returns it was an accountant and I've heard the same elsewhere aside from my wife's experiences doing taxes professionally. Get referred to someone that has has good experiences with a pro.

GarKeith 05-15-2012 04:33 PM

I talked to my accountant last night, you hit it right on the head wjnfirearms. I have more than one business also so my schedule C's will also effect each other. That will help since I sell real estate and make a great profit, but starting this business will be a loss at first. They will nicely offset each other, at least for the first year.


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