That is funny. According to my tax account, it didn't matter about my credit card loans. That didn't count as negative. Rather, the unsold inventory were counted as asset, thus considered income. Cost of good sold = Cost of good + beginning inventory - ending inventory So, even in my first year, despite the fact that I had a big credit card debt, I still had to pay taxes because I was making a profit (in papaer) due to unsold inventory.
4/11/10 at 5:24pm