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Business & farm
@madkiwis wrote:The business owes me $100,000 but the inventory valuation increase is going to translate to an extra $100,000 in earnings.
As a sole proprietorship, you actually owe yourself the funds you lent to the business, but your inventory will increase by $100,000 (the $100,000 in inventory you buy will be entered in Part III of Schedule C as "Purchases").
As a result, there will be no translation into an extra $100,000 in profit unless and until you sell the inventory you purchased with the fund you invested in your business.
‎September 18, 2021
10:14 AM