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Question Year-end inventory value

Discussion in 'Picture Framing Business Issues' started by HB, Jan 12, 2017.

  1. HB

    HB SGF, Supreme Grumble Framer

    I would like to know how many of you value your materials inventory at the end of your taxation year. Obviously a full sheet of matboard that you purchased during the year for $10 that is still in inventory after all jobs are done, comes straight out of the expenses at year-end and becomes an asset. My question is, what about the 1/2 or 1/3 sheet? And moulding, a good condition 8 ft moulding you paid $80 for is $80 out of expenses, but what if only 4 ft is left - is it $40? - what about 2 ft????
     
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  2. Twin2

    Twin2 SGF, Supreme Grumble Framer

    I'm just in the process of doing my year end inventory right now... I've heard other framers only count full sheets of matboard as being still in their inventory. I also count partial sheets as well... 1/4, 1/2, 3/4 sheet. As for moulding, I will include anything 4 feet and longer, as long as it is in good condition, in my inventory. Now I'm a fairly small business, so I'm sure I don't have as much in inventory to go through as other frame shops (although my husband, the accountant, looks at what I have and comments I'm inventory rich and cash poor :) )
     
  3. JWB9999999

    JWB9999999 SGF, Supreme Grumble Framer

    I have all my mouldings counted down to the single foot. We use Lifesaver, so the numbers are there, but I do a physical check and adjust the levels as needed at the end of the year (and periodically throughout the year as stock of any particular moulding drops low). I look up all my invoices so I know the exact amount I paid per foot. That's recorded for my taxes.

    For the small offcuts, why keep 2 feet of something? If I don't stock it, that 2 feet is in the trash bin and gone. For my stock mouldings, I keep several shelves of small offcut pieces, and I can quickly estimate and give a value to the entire lot. The vast majority of those small offcuts are small black mouldings with a very low value.

    Full sheets of mat are counted and also priced individually. I don't keep very many full sheets in stock, only about 8 different ones, so this is not the pain that you might think.

    For partial sheets of mat, I just use my best estimate. For everything. I don't count them individually, nor price them individually. So, for starters, I don't have any pieces of scrap mat smaller than 1/4 sheet. I can estimate how many partial sheets are in a bin, by seeing how many mats are in 1" of bin width, and then extrapolating. It's pretty easy to look at the bin and note the relatively number of "big" pieces of scrap compared to small pieces. Generally that mean I that, after estimating the quantities of mat in a bin, I'll multiple that number by approximately 0.35 to come up with an "equivalent full sheets" number. That's what I will write down. For price, I bin my mats by the kind of mat they are, i.e. Crescent Select, Crescent Rag Mat, etc. I can get a price for those easily enough. I have all my suedes from every vendor in a single bin, so I just average the prices of suede mats across the vendors and use that as my "mat price".
     
  4. graysalchemy

    graysalchemy CGF II, Certified Grumble Framer Level 2

    Oh dont remind me mine comes up at the end of feb. I only count full usable stock. Stuff which has been there for ages or shows signs of damage gets written off. A higher stock value means higher profit which in turn means a higher tax bill.
     
  5. Larry Peterson

    Larry Peterson PFG, Picture Framing God

    Check with your accountant. Those scraps of mats and moulding can likely be expensed, not counted towards inventory.
     
  6. HB

    HB SGF, Supreme Grumble Framer

    I recollect past Accountants position is that anything you keep cannot be "Written off" - you want to write it off- you need to discard it - not re-purpose it.
     
  7. HB

    HB SGF, Supreme Grumble Framer

    That is more or less what I do - except I deduct a small (10-20% for damage in storage)
     
  8. GUMBY GCF

    GUMBY GCF SGF, Supreme Grumble Framer

    if you want to really keep track of waste mat board. keep a separate can for scraps. In short all mat you throw away, weigh it before you throw it in the dumpster. Mark it down on a log sheet
    If you weigh an average mat board it will weigh about 1,5 lbs.
    Last month I thru away 108 1/2 mat boards.
     
  9. graysalchemy

    graysalchemy CGF II, Certified Grumble Framer Level 2

    I dont think there was any suggestion of re purposing. What I write down will get thrown away, I have just filled a skip with old moulding.
     
  10. David Waldmann

    David Waldmann SGF, Supreme Grumble Framer

    That's an interesting way of looking at it that I've never heard before. As far as the IRS is concerned it's perfectly legitimate, because the snapshot on the last day of the reporting year is right. But in actuality all inventory is an asset from the time you buy it until it's sold, when it becomes an expense.

    OTOH, I can see that if you mostly buy materials for a particular job at a time it would make life a lot easier if you just pretended it was an expense and did a reconciliation at the end of the year, as you do.
     
    cvm likes this.
  11. HB

    HB SGF, Supreme Grumble Framer

    RE
    A higher stock value means higher profit which in turn means a higher tax bill.

    Shouldn't that be an EARLIER tax bill? As for inventory vs expense, no matter how it is reported, from year to year, the taxes paid will be the same - the only difference is in which year it would be paid. In the end, all things will balance out & the same amount of taxes will be paid. Expensing all scraps from year to year means when you inevitably sell out and do get some money for scraps, you would be paying extra taxes at the end. If you inventory your scraps every year, you will be paying more taxes now but on sellout, you won't be paying as much as if you expensed everything all along. No?
     
    Last edited: Jan 13, 2017
  12. artfolio

    artfolio SGF, Supreme Grumble Framer

    I always found stocktaking a pain and never wasted any more time on it than was absolutely essential. Over the long term it all washes out anyway. I only counted full sticks of moulding and full boards of matt and for popular mouldings and matts I would estimate the offcuts. Other offcuts would be ignored and when/if used they became bonus profit.

    If your conscience will allow it rigging your inventory is a good "fix" for those years when you have made too much money and have a tax problem. I seriously doubt that the Tax people would ever come around and do a stocktake to check it out and good luck to them trying to do it a few months later.
     
  13. David Waldmann

    David Waldmann SGF, Supreme Grumble Framer

    Not necessarily. If we had a flat tax, yes, but with a tiered approach, taking an expense in a year you made more profit instead of a year when you made less profit could be advantageous to the business owner. And the IRS doesn't like that.

    Realistically, for the average (or probably even above average) framer, this is going to make little to no difference. But it is possible.
     
  14. MarkyW

    MarkyW SGF, Supreme Grumble Framer

    I have occasionally wondered (while doing inventory) if someplace like Ford figures out how much is left on those giant rolls of sheet metal that they use to stamp fenders out of. And if they count up every nut and bolt they have.

    And about grocery stores and Walmart where you see people taking inventory while they are open and stuff is being bought.
     
  15. i-FRAMER

    i-FRAMER MGF, Master Grumble Framer

    i estimate only. If i was to close and sell it off, I would only get a 3rd of its actual value anyway (if lucky). If we were to lose it all in a disaster, then i am only covered up to a certain amount anyway. so as long as my estimate is under then then there usually is not a problem.
    On the accession we have lost stock due to water, i just had one of the suppliers do a quote up for what was lost and used that to claim. A few photos of damage and no questions asked.

    I am about to go through our stock and make a heap of frames up for our bi annual sale. This cleans up all our offcuts, moulding not moving and discontinues, and we normally make at least a few thousand in that week from what i was about to throw out. Depending what is left might gets stored in the loft for next time, or thrown out, or donated to a school.
     
  16. Bob Carter

    Bob Carter SPFG, Supreme Picture Framing God

    hey David help me by clearing up something because it's been a few years. But, I do not understand Inventory as an 'Expense'. Seems, from Memory Top Line was Total Sales, then you deducted 'Cost of Inventory', what you actually paid for the stuff. Next was the Difference or Gross Profit. Then under that was list of Expenses. Things like Rent, Payroll, Insurance. Where does 'Inventory Expenses' come in? Perhaps wemight be calling the same things by different names?

    We took annual Inventory and the rule was if we can sell it, we inventoried. If a sheet of matboard 'cost' $10 and we had 1/2 sheet, we inventoried for $5. We didn't 'write off' anything. The paperwork on 2in x 32in end cut of glass would be staggering LOL. Inventory was to check shrinkage, waste and adjust Gross Profit. My partner was a CPA and he set up protocol. If one doesn't have CPA, you should. But, key is to do it the same year after year to create a Comparative Baseline

    Been in several biz and each did pretty similarly. In restaurant biz, stores inventoried every 30 days. Often steaks daily. Even t hough the cow had been slaughtered fairly recently; some still had 'legs'and walked off on occasion

    Someone asked if big guys inventoried everything? Yes, every nut and bolt. In one giant operation I worked, shrinkage allowance was set; say 5%. Bonuses were gauged on that number, which tied back t o adjusted GP and turnover of stock. It was a big deal
     
  17. David Waldmann

    David Waldmann SGF, Supreme Grumble Framer

    I was talking big picture; Income less Expense equals Profit.

    BTW, in our business the "Cost of inventory" or what we call COGS, includes the Direct Labor (and the associated costs of that labor, such as PR taxes, medical insurance etc), as well as the cost of overhead related to making finished goods from raw material such as depreciation of equipment, leasing costs, tooling and sharpening thereof, etc. While we don't, I know some companies go so far as to include the pro rata cost of the building, insurance, heat, electricity etc as an inventory related expense ("stored" as part of the asset until sold). So "cost of inventory" can be a whole lot more complicated than what you paid for materials.

    As for someone like Ford, their computer system tells them how much is sitting on the shelf. My guess is that they do cycle counts, where they do spot checks on certain items.

    How many count Work In Process inventory? If you've got 12 pieces that you've started but haven't completed and billed, the materials used should be counted as WIP. Inventory is an asset until sold (meaning the sale is recorded; and if you are dealing with inventory you should be on an Accrual basis so it doesn't matter if you've been paid or not).
     
  18. Bob Carter

    Bob Carter SPFG, Supreme Picture Framing God

    David thanks for your clarification.

    Never seen Payroll expense included in CoGs. Frieght in, yes.

    Two factors

    follow guidelines established by CPA and do it the same every year

    I hear you on complicated; and it seems you guys have made it Really complicated LOL. I'm certain at your level, you see Statements of Income monthly and are knowledgeable. Year end inventory we reversed Sales not delivered, but paid and 'counted' inventory. Again, follow CPA advice

    How many people prepare Monthly SoI'S. I do remember in my classes when discussing 'normal, the way other biz's report/track/monitor data' that there were plenty of 'deer in headlight' reactions LOL . Of all the 'hats' a small biz owner must wear, that is often left on the hat rack.
     
  19. cjmst3k

    cjmst3k SGF, Supreme Grumble Framer

    All things being equal, is it better to have higher inventory on paper, or lower?
     
  20. prospero

    prospero SPFG, Supreme Picture Framing God

    When it comes to valuation I only count the untouched stock at full cost. Anything, whether
    it be a stick of moulding with a foot chopped off or a sheet of something that has been cut into
    is not in it's original state and becomes and offcut and is essentially worth nowt. But I do enter a
    yearly value for all the stuff that is usable but not entire. I suppose you could miter one end of every
    stick that comes in (nothing wasted but the stick is altered) and at the end of the year value all your
    moulding as $1000 or whatever worth of offcuts. Maybe NOT a good idea.:confused:

    UK rules are probably different, but according to a senior local tax inspector I can "write off" any
    old stock. In fact he said I could write off any stock, old or not. At the factory where I used to work
    we would write off 33% of the value on any stock over a year old. Next year another 33%. And next
    year value it at nothing.
     
  21. graysalchemy

    graysalchemy CGF II, Certified Grumble Framer Level 2

    Depends on how much profit you want to show.
     
    JFeig likes this.
  22. David Waldmann

    David Waldmann SGF, Supreme Grumble Framer

    We are manufacturing Finished Goods from Raw Materials. Those FG may be "sold" (ordered) before they are actually completed or more likely sit on the shelf for X months. In 30 years I have never had anyone question or suggest otherwise that the the costs additional to material should not be included in the inventory value of same.

    The cost of Finished Goods includes the entire cost of making them. Just as if if you bought the FG from someone else. In a frame shop, technically this includes labor as well. But since most frame shops are a Make to Order type of business it's generally not worth the complication of factoring the labor in.
     
    Last edited: Jan 15, 2017
  23. David Waldmann

    David Waldmann SGF, Supreme Grumble Framer

    Exactly. If you want to impress your banker, you want to inflate your inventory as that will increase your profits (less "expense". But if you want to pay less taxes you should show as little inventory as possible (more "expense"). Of course this is all theoretical, as you are going to file what you actually counted. But it shows what will happen if your inventory is higher or lower than what you thought.

    All of our inventory is tracked real-time, i.e. it goes into Raw Materials Assets when purchased, and transferred to Finished Goods Assets (along with the labor costs to do so) when made into a Finished Product. Finally it is "expensed" when an invoice is generated. So our Physical Inventory is only to reconcile errors. We do weekly cycle counts on our mouldings (low volume items get checked once a year, high volume ones once a quarter), and a warehouse wide raw materials one at the end of the year. Plus we make any adjustments as we catch errors throughout the year whenever discovered.
     
  24. Bob Carter

    Bob Carter SPFG, Supreme Picture Framing God

    thanks, David. Like I said, just never seen aStatement of Income like that. Way back when, I was in a Co-op that produced wood mldg. The accting was to create 'actual mfgr cost' and then added to that the admin expense to cover Operating Co-op. It was a friggin' nightmare LOL. Trying to create a price per foot to members was near impossible

    So, we decided on adding up all 'material' costs plus a 'fixed (guesstimate) cost per foot by width. 50 Members all with 'proprietary' mldgs, incredible! One of the goofy problems was mldgs made in Jan or March 'cheaper' than Feb! I don't think any of us really knew what it cost, but through Co-op it was much cheaper than buying it via mfgr

    Like I should have said 'never seen a SoI in a frame shop' like that

    thanks
     
  25. Alex_607

    Alex_607 Grumbler in Training

    Have any of you inherited or been given framing materials for free that you used for resale? How did you go about dealing with this? How'd you deal with it in terms of counting it in your inventory or when you made profit of it? I'm preparing to open my framing business and I have hundreds of matboard, loads hardware, some moulding, and miscellaneous tools and items that I have inherited from my grandmother's framing business from about 10 years back. Many of these items are still usable and still in production. Really a question for a CPA but thought I check for some opinions/protocol on here.
     
  26. JWB9999999

    JWB9999999 SGF, Supreme Grumble Framer

    Sure. I think I acquired roughly 20,000 feet of moulding last year for "free" from a fellow framer. It did cost me money to rent a truck, pay for gas, and pay for labor to help me load and unload it. I estimated the footage and divided the money I spent by that to come up with a cost per foot for all of it, which I then used in my inventory at the end of the year. I do not believe that you will be able to claim a 0 value even if you didn't pay for it; check with your accountant, but I think you'll end up having to list a "fair market value" for it.

    However, this is only for inventory taxes, which you may or may not be required to pay. Check.

    Some of the tools may be considered equipment, or perhaps not. Check with your local tax authority. If they are equipment, then you'll have to list them for your property taxes and pay tax on them that way.

    There's no issue for you when you make a profit on any of these materials. It really doesn't matter whether you paid $1000 or $0 for something. In the end, you sell it for $X and you decide what X is. Then you have to collect sales taxes and send those in monthly, and you will have to file income taxes. That's it.

    One other thing to note. My local tax jurisdiction is generous with inventory taxes. If you open a business in the middle of the year (I'm not sure of the exact cutoff date), they do not require you to file inventory taxes for that year. But the following year you will have to do so. Every jurisdiction will be different, so this is something else for you to check. But it could save you the hassle of having to accurately count and value stuff right now and give you time to do it later.
     
    Last edited: Mar 27, 2018
  27. HB

    HB SGF, Supreme Grumble Framer

    Check with your acccountant but as far as I know, technically, (as in should you get audited) anything you keep is inventory, if it truly is scrap (garbage)- you would throw it away! To the tax man - if its worth keeping, its worth something, its worth selling..and worth being taxed as an asset.
     
  28. David Waldmann

    David Waldmann SGF, Supreme Grumble Framer

    if someone delivers you moulding and puts it in the specified slots, yes, it is indeed "free".

    But recognize there are two sides to every coin. Every Dollars worth of product "given" / "earned" (through savvy bizness deal, or whatever), inherited, reduces your COGS, which Increases your Profit. Really, TAANSTAAFFL.
     
    cvm likes this.
  29. Rick Granick

    Rick Granick SPFG, Supreme Picture Framing God

  30. David Waldmann

    David Waldmann SGF, Supreme Grumble Framer

    Funny - I noticed YOUR typo immediately...

    Should be TANSTAAFL...

    :oops:
     
  31. Joe B

    Joe B SGF, Supreme Grumble Framer

    Am I reading this right? This is what TurboTax Has about inventory accounting requirements:

    Inventory is a company's merchandise, raw materials, and finished and unfinished products which have not yet been sold. Reporting inventory allows you to match your income with the expenses incurred in producing it, and calculate the cost of producing that income. If you have less than $1,000,000 in sales or receipts for each of the last three years, you are not required to report inventory.
     
  32. Joe B

    Joe B SGF, Supreme Grumble Framer

    I must say I have found some other questionable things with Turbo Tax so I will contact the IRS before I do not account for my inventory - to me it just doesn't sound right... just saying
     
  33. Larry Peterson

    Larry Peterson PFG, Picture Framing God

    From https://www.irs.gov/publications/p334#en_US_2017_publink1000313270

    Inventories
    Generally, if you produce, purchase, or sell merchandise in your business, you must keep an inventory and use the accrual method for purchases and sales of merchandise. However, the following taxpayers can use the cash method of accounting even if they produce, purchase, or sell merchandise. These taxpayers can also account for inventoriable items as materials and supplies that are not incidental (discussed later).

    1. A qualifying taxpayer under Revenue Procedure 2001-10 in Internal Revenue Bulletin 2001-2.

    2. A qualifying small business taxpayer under Revenue Procedure 2002-28 in Internal Revenue Bulletin 2002-18.


    Qualifying taxpayer.

    You are a qualifying taxpayer if:

    • Your average annual gross receipts for each prior tax year ending on or after December 17, 1998, is $1 million or less. (Your average annual gross receipts for a tax year is figured by adding the gross receipts for that tax year and the 2 preceding tax years and dividing by 3.)

    • Your business is not a tax shelter, as defined under section 448(d)(3) of the Internal Revenue Code.


    Qualifying small business taxpayer.

    You are a qualifying small business taxpayer if:

    • Your average annual gross receipts for each prior tax year ending on or after December 31, 2000, is more than $1 million but not more than $10 million. (Your average annual gross receipts for a tax year is figured by adding the gross receipts for that tax year and the 2 preceding tax years and dividing the total by 3.)

    • You are not prohibited from using the cash method under section 448 of the Internal Revenue Code.

    • Your principal business activity is an eligible business (described in Pub. 538 and Revenue Procedure 2002-28).
     
  34. Bob Carter

    Bob Carter SPFG, Supreme Picture Framing God

    from memory, we counted inventory yearly solely to confirm cost-of-goods. Don't ever remember any other purpose tax-wise. We inventoried everything but some counts like wire and hardware were guesses. Our key was consistency; count the same way year after year. We did well over a million but just don't remember 'reporting' inventory. What happens to that reported number? Say, you have $50K in inventory; how is it reported? What is your tax liability?

    The 'not reporting under $ 1m' has me puzzled. How can you determine CoG without a starting inventory and ending inventory?

    I had a CPA as a partner in all my bizes, so he kept us 'legal'. I remember him saying that very few ma/pa type biz with a corporate structure ever needed to file as the minimum 'pr6ofit' to be taxable was rarely met.

    As best as I remember he said the profit threshold was around $50K?
     
  35. Larry Peterson

    Larry Peterson PFG, Picture Framing God

    If you are on a cash basis (one of the qualifications for this), then CoG are directly expensed so there is no starting or ending inventory. For accounting purposes, there is no inventory on the balance sheet as it was directly expensed on the P/L statement.
     
  36. Bob Carter

    Bob Carter SPFG, Supreme Picture Framing God

    thanks, Larry but my memory is foggy and CPA Partner did that heavy lifting. Almost positive Inventory on Balance Sheet as Asset. Heck, Inventory was low 6 figures. Without that asset it would be pretty small potatoes

    Like I said, been a few years. But, what is tax liability for varying levels of inventory. Is this a common problem for most framers?
     
  37. i-FRAMER

    i-FRAMER MGF, Master Grumble Framer

    Just out of curiosity, how many use an accountant to do your tax, or are you doing your own tax?
     
  38. Bob Carter

    Bob Carter SPFG, Supreme Picture Framing God

    For the same reasons framer tell cleints the importance of using a professional framer, I can't imagine doing my own taxes. My partner feels about TurboTax the sames as framers feel about online framers lie art.com:D
     
  39. i-FRAMER

    i-FRAMER MGF, Master Grumble Framer

    It took me a while to find a decent account. Your accountant has to work for you and have some creativity.
     
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  40. Joe B

    Joe B SGF, Supreme Grumble Framer

    I use a tax service but I always check over their work - I have a friend with Turbo Tax and he told me about the inventory accounting, that's why I came up with that question. I may have to do an amendment because it appears I may have been overpaying for the last few years. I have to question my tax service person to be sure. No mater what, if you have to pay in you know you have made some money. just saying. :rolleyes:
     
    Bob Carter likes this.
  41. Bob Carter

    Bob Carter SPFG, Supreme Picture Framing God

    Joe what amount is your 'inventory tax'?

    Is this a Federal tax?

    thanks
     
  42. Joe B

    Joe B SGF, Supreme Grumble Framer

    Good question that I did not have an answer for and still may not have the correct answer:confused:. I didn't know if it was a State or Federal Tax but with some additional research it appears to be a state tax if the state in question has a inventory tax, most states don't. Supposedly Minnesota does not have an inventory tax. From what I understand, our inventory is added to our assets increasing the overall value of the company which of course is of no value until the company is sold. At least that is how I understand it now. I have to admit, tax laws just make my head explode!!!
     
  43. David Waldmann

    David Waldmann SGF, Supreme Grumble Framer

    Sorry, but that has got to be Accounting 101. Inventory IS an asset until you sell it.

    What has helped me is this: Think about all your business transactions as if the were cash. IOW, when you buy 50' of moulding at $10/ft, you are taking $500 out of your [local bank] account and putting it into your storage rack (whether or not you've paid for it - that's accounting 102).

    Likewise, when you do a job you are taking that (say you used the whole 50', or at least charged for it :D) $500 out of your Bank Account and putting it in your "You owe me" account. Note, however, that since you have applied your expertise and labor, the amount on the other side of the "you owe me" account is $2500, so the amount exceeding the "this cost me" account is $2000. This, of course, is your Gross Profit. And if I could earn a GP percentage of 80% I might consider retiring in a year. OK, maybe two. Different businesses are, well, different.
     
  44. Bob Carter

    Bob Carter SPFG, Supreme Picture Framing God

    Hey David, let's do a little Master's level.:DWhen you sell that inventory it still is an Asset but now on steroids-CASH

    And, that's the 'REAL' Asset:D

    Which tells you the importance of turnover. That old, tired, dated inventory every frame shop has is technically an asset but is 'lifeless' until you sell it. I used to teach as part of my classes that very importance of turnover and those deer in the headlights moments and, then, got a few 'AHA' moments. A little complicated to try here, probably


    No, that's when you have the resources to do the things in your biz you love, hire someone else to do the things you aren't really skilled and outsource the things you hate (like accounting for many framers:))
     
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  45. Joe B

    Joe B SGF, Supreme Grumble Framer

    Fresh off the web: Seven states (Arkansas, Kentucky, Louisiana, Mississippi, Oklahoma, Texas, andWest Virginia) still tax most inventory. In Alaska, Maryland, Vermont, and Virginia, inventory is taxed by some local jurisdictions. In Massachusetts, inventory of a sole proprietorship and some LLCs has not been exempted from the TPP tax.

    I don't know what you would call inventory for the seven states listed above - it doesn't sound like an asset, more like hindrance considering you may be paying tax on that inventory for many years if you don't sell it - that would actually look a bit like "double taxation" or worse. All I can say is that I do not want a carp load of inventory left over year after year even though I don't pay a inventory tax. Like I said "Tax Law make my head Explode"

    In my opinion there should be a flat rate tax on all income personal & business, no hiding income including offshore, no write offs, you sell something in the USA you pay a tax even if you are a foreign company. If you don't want to pay the tax you don't sell or manufacture in the USA. You don't get a refund unless you pay in. It is simple stupid and nobody can cheat and if you do find a way to cheat you go to right to jail, you don't pass Go and you don't collect $200.00. I know it will never happen but it would be simple and easy...just saying.
     
  46. David Waldmann

    David Waldmann SGF, Supreme Grumble Framer

    From an accounting and IRS perspective it's still an asset. In the last town we operated in they used to have what they called "personal property" tax on machinery and equipment. It was only for businesses (strange name, I know), as well as inventory tax. Neither in our current town.

    Hey I'm with you all the way on that point.
     
  47. Bob Carter

    Bob Carter SPFG, Supreme Picture Framing God

    Noticed TX on your list. I've had several biz in TX and can only opine that Inventory might have been reported as 'Property' for County taxes? Might that be concern? I may easily made a Fed assumption because it's April
     
  48. Joe B

    Joe B SGF, Supreme Grumble Framer

    Bob, I really don't know. I just copied what was online, with taxes who ever know, they could easily pull the wool over my eyes :eek:
     
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  49. JWB9999999

    JWB9999999 SGF, Supreme Grumble Framer

    The State of Mississippi passed a law in 2016 (I think) phasing out the state inventory tax over a number of years. However, local jurisdictions may still charge an inventory tax. My county does.
     
  50. Mike Labbe

    Mike Labbe Member, Former moderator team volunteer

    Some of us also have a "Tangible Assets Tax", which here varies from city to city. (thousands per year on equipment like computers/printers/router/compressor/phones/vnailer/cmc/glass cutter/tools/press/automation equipment/fridge/microwave/coffee machine, fixtures like moulding racks/counter/chairs/signage, improvements made, etc) They love to show up to audit for this, and base it on original value with a slight depreciation. (even 30 year old equipment is valued close to original msrp) Then the fire department charges a fire tax, based on a percentage of the reported tangible assets tax.
     
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