Skull Pilot
Diamond Member
- Nov 17, 2007
- 45,446
- 6,163
Excuse me but a retail business does not make a profit on items it uses itself.
At best they can write off the cost of the items but there is no profit. And they can't write it off twice
Tell me again how rich you are if you don't even know that?
Let me go slow for you.
WalMart is a four-tiered profit company.
Procurement
Logistics
Transportation
and
Stores/Sam's Club
The first three are private companies owned by the WalMart seven which marks up and sells to the next.
Stores is the publicly held company.
They can't write it off twice? If the former employee doesn't return it they can. If you purchase an item and no longer have the benefit of that item, that is a loss. Loss is deductible.
If you use a product you cannot write it off twice. It's no different than using a perishable good off the shelf. If i own a convenience store and use a carton of cream for the coffee station I can only write off the cost of the cream once. if I make less profit on that one carton of cream I cannot call that a loss and write it off again.
If you provide uniforms for staff all you can write off is the cost of the uniform. You cannot write it off again if that uniform gets stolen or damaged.
Now on the other hand the uniforms can be considered an employee benefit and the employees may be liable for taxes as the value of the uniforms can be counted as income.