So let's say I had $10,000 in profit and 0 inventory on the last day of the year, December 31st. On that day if I spent the $10,000 to buy more inventory to resale, my profit for that year would be $0 if I had no more sales on that last day. So then I wouldn't be liable for any taxes for that year since I purchased the inventory but for the next year when I sell it and profit from it then I would be held liable to pay for it for that years tax return (unless we have more costs then profits)?
