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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
Satisfied Customers: 586
Experience:  10 years experience
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If i want to start an online sports memorabilia business,

Customer Question

if i want to start an online sports memorabilia business, are items/inventory that i purchase and have not sold yet tax deductible as a business startup?
JA: The Accountant will know how to help. Please tell me more, so we can help you best.
Customer: i have purchased or obtained greater than 50K worth of memorabilia and want to start a business selling this merchandise, would the merchandise i have currently be considered a business expense for a startup that i could use as a tax deduction
JA: Is there anything else the Accountant should be aware of?
Customer: no
Submitted: 10 months ago.
Category: Tax
Customer: replied 10 months ago.
Are my actual game tickets or travel to numerous events to obtain the memorabilia tax deductible
Expert:  MequonCPA replied 10 months ago.

Hi and welcome to JustAnswer -

The memorabilia you have purchased is inventory and is not deductible until you sell the item. Its proceeds will be included in sales and is cost will be cost of goods sold. Travel to events to acquire and/or sell memorabilia should be deductible as business expenses. However, meals and entertainment are only 50% deductible. Game tickets could be deductible (subject to the 50% limitation) if you can support the justification for attending the game as business related. Just being in the sports memorabilia business is not in and of itself proof of a business deduction.

Hope this helps.