Hmm. All good questions. I know he runs the business as a sole proprietor, and files using Schedule C. His inventory is not really tracked per se. I believe he estimates inventory value - except for purchases actually made in the business year - those he has accurate info on - the rest is estimated. I am assuming that if I continue it as is that I would use his last inventory valuation (estimate) as the starting point. Since technically the inventory I start with is not purchased by me...is the taxable amount of sales the entire amount or just the difference between the starting value and sale price?
I feel like I am staring into a black hole...:-)
