@JKSteele wrote:
.....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?
Is your father going to turn the business over to you (while he is still alive)?
If you will basically inherit the business (or otherwise receive it from your father when he passes), you will get a stepped up basis in the business as if the date of death. You will, of course, need to get the business appraised, which will include an appraisal of all assets (including the inventory).
@JKSteele wrote:
I feel like I am staring into a black hole...:-)
That is precisely why you need to consult with an estate planning attorney.
