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rsc1925m
August 31, 2022
Question

I resale items I purchased and paid taxes on. Will I be taxed on those same items when I resell?

  • August 31, 2022
  • 1 reply
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    1 reply

    KochuK
    KochuK
    August 31, 2022

    Hi rsc1925m, thanks for post the question.

     

    When you purchase an item for resale, it becomes your inventory. You may pay sales tax at purchase if you do not have a resale license. But there is no income tax for purchases.

     

    Generally, when you sell inventory for a profit: sales less cost less administrative expenses = net profit which is subject to income tax and self employment tax.

     

    Hope the above clarifies.

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