S
slac.in.the.box
Guest
I realized that I have personal property that I've been selling off to pay business expenses before the business is profitable (70 stainless steel baskets that I purchased from the airforce at an auction in 2007). In 2019 I sold twenty of them for $2000, and used that $2000 to pay for virtual hosting expenses ( right now the corporate back end I am developing runs on 14 virtual machines hosted by Linode, and they add up to roughy $200/month).
There's a place on the Schedule-C for inventory. Without advice, what I concocted was that I loaned the c-corp a dollar, and then the c-corp ibought 20 baskets from myself for a dollar, and sold them for the 2k. But what about the other 50. Should I sell all of them to the corporation, list them as end of the year inventory? And what about the beginning of the year inventory? I owned them personally but hadn't used any for business yet. I'm not in the business of selling stainless baskets; but they are helping offset the cost of operation during startup. How do I document that? And they take up at least 60sq.ft. of my mother's garage, 6 miles away--business use of someone else's home; so I need the extra 8829 form cause it's a second property... it starts to get pretty complicated pretty quickly. Hope these professionals respond.
There's a place on the Schedule-C for inventory. Without advice, what I concocted was that I loaned the c-corp a dollar, and then the c-corp ibought 20 baskets from myself for a dollar, and sold them for the 2k. But what about the other 50. Should I sell all of them to the corporation, list them as end of the year inventory? And what about the beginning of the year inventory? I owned them personally but hadn't used any for business yet. I'm not in the business of selling stainless baskets; but they are helping offset the cost of operation during startup. How do I document that? And they take up at least 60sq.ft. of my mother's garage, 6 miles away--business use of someone else's home; so I need the extra 8829 form cause it's a second property... it starts to get pretty complicated pretty quickly. Hope these professionals respond.