Help...question about stock for tax return

jezabel

hello I started a business selling book online...I am filling the tax return form now...I know I have to calculate my stock....

When I started my business I had many books at home, they were mine, some quite old so I do not know the cost of them as I bought them long time ago and many I received them as gifts. I do not have the receipt for them, however I sold some of these books in my online business last year.

Now I have to fill in the tax return and I have to calculate the value of my stock carried forward, I still have some books I have bought last year but I still have the old ones I did not buy specifically for the business as they were my property....do I have to calculate the value of these books that were my property for the tax return and consider them as stock or not?!? Can I use my own property for my business?

thank you very much for any help you can give me! liz

TM1976

Technically these personal items are not part of your trading and you shouldn't include the revenue or as a part of stock.

jezabel

TM1976 wrote: »

Technically these personal items are not part of your trading and you shouldn't include the revenue or as a part of stock.

thank you for your reply again...however I did used my old books as when I started the business I had little money and my business adviser told me I could include my old books in my new business and after that buy new stock with the profits...as I have already sold these old books I hope it is ok as I cannot rectify this...some books I received as gift from friends for my business so I did not pay any money for them and I sold them in my new business...I hope it is ok...thanks liz

TM1976

It's not illegal or anything but this will increase your taxable profit and result in you paying more tax that you needed to as you are showing a profit within you business for selling books that were yours.