Christian Fandt wrote:
> This is a bell-ringer with many companies who pay too much attention to
> "The Bottom Line". Even my company's bean counters panic when they find
> that obsolete parts have been setting on the shelf for more than a year or
> so. "Call the Dumpster Brigade! We've got an emergency in Finished Goods"
> is the call from the company comptroller. We're a small-to-mid sized
> company, so sometimes we can negotiate with the comptroller so salvage some
> stuff. The IRS socks it to all companies to pay tax on all of their parts
> inventory. If it is not making money (as in being obsolete and not many
> repair parts being sold) then trash it. Otherwise, a company could be bled
> dry of its financial resources over a period of time from being taxed too
> much for too long.
And some people wonder why I'm such an Anarchist/Libertarian. In
theory, (ask OJ), you can't be tried twice for the same crime.
"Inventory" tax means that for as long as you hold the merchandise,
you will continue to be taxed every bloody year unless you bite the
bullet and throw the stuff away. That makes it damned hard to go
into business fixing old equipment that doesn't break often or for
that matter being a used-book dealer. That latter being my chosen
next career.
--
Ward Griffiths
They say that politics makes strange bedfellows.
Of course, the main reason they cuddle up is to screw somebody else.
Michael Flynn, _Rogue Star_
Received on Fri May 08 1998 - 01:10:07 BST