Reporting Used Car Dealership Inventory
We file our taxes with our personal taxes as a business. My question is regarding inventory. We get cars from the auction and have dealers under our license that have their own businesses. Auctions report form 8300 to the IRS when more that 10,000 worth of cars a bought. If it was not for the form 8300, I was just only gonna report my inventory and do taxes accordingly. Since we have dealers under our license, the forms 8300 that gets reported to the IRS looks like a lot more than what our inventory really is.
1. Do I report all this inventory? This will make our net look look really really low.
-the dealers under the license just use our license to bid, pay for, and
sell cars for themselves.
2. If I report this inventory, how do I write off the inventory from the other
-Is it away to actually distribute the inventory to each dealer who bought it
(I thought about a 1099 form).