What is better to pay taxes on, income, inventory or buy assets ...

Question by mechellmybell72 : What is better to pay taxes on, income, inventory or buy assets ?
If I had $ 10,000 in income at the end of a year, Which would be wiser to do. (1) purchase more inventory and if so, would I have to pay taxes on that? (2) pay taxes on the income. (3) purchase assets?This is based on a company buys and resales in Florida Which merchandise that is shipped mostly out of state. Best answer:
Answer by

jseah114
purchasing more inventory would not reduce your taxes. You can only deduct the cost of items that you actually sold during the year. If you purchase assets, you can depreciate them, THEREBY reducing your taxable income from the business. However, you have to depreciate it over the asset?s useful life, so you would not recoup the cost of the asset in the year purchased unless you were to elect to fully depreciate it in the year of purchase under Section 179th

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Source: http://www.lovefinanceinfo.com/2012/02/what-is-better-to-pay-taxes-on-income-inventory-or-buy-assets/?utm_source=rss&utm_medium=rss&utm_campaign=what-is-better-to-pay-taxes-on-income-inventory-or-buy-assets

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