Legal Issues: Sales & Use Tax

[Tammy Snyder]

Well, this is related to the business...

What is a good way to determine the value of your inventory when you are starting with things you have bought before even planning to have a business?

How do you calcululate the value?

Any advice would be appreciated.

Tammy

[OsmosisStudios]

Why is the value important?

[Sime]

Does your insurance need you to work out the current depreciated value? Do they not just offer market value at the time of a claim? When I insured, I gave RRP of all my gear and the insurer determines value when (if) I claim.

If you need to work out the value - the only real way to do it is to hunt around looking for second hand / new gear prices.

Sime

[zona5101]

Originally Posted by Tammy Snyder

Well, this is related to the business...

What is a good way to determine the value of your inventory when you are starting with things you have bought before even planning to have a business?

How do you calcululate the value?

Any advice would be appreciated.

Tammy

if you are planning to sell those things you bought or they will become part of what you sell (like a mat or a frame or printing paper) then you would record them at your actual cost. Depending on how you decide to value inventory going forward (lifo, fifo) will determine the value you carry them on your books. If the items are not for resale such as your camera gear then they are not inventoy but part of your business assets.

[alicettvn]

Originally Posted by Tammy Snyder

Well, this is related to the business...

What is a good way to determine the value of your inventory when you are starting with things you have bought before even planning to have a business?

How do you calcululate the value?

Any advice would be appreciated.

Tammy

Can I second that? Any help for a beginner would be greatly appreciated.
Whens the next comp? I'm itching to see how I go.