MinhT1
Expert Alumni

Get your taxes done using TurboTax

Goods for sale on consignment can only be deducted as Cost of Goods sold when they are actually sold and you receive the sale price.

 

When you purchase the items, the sales tax you paid is included in the amount of your purchases. 

 

When the goods are sold, you charge sales tax to the customer and include the amount of sales tax in your income. Sales tax collected is then remitted to the taxing authorities.

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