Re: Question re. Business Income Statements

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Posted by Natalie-VA on August 12, 2008 at 09:24:05:

In Reply to: Re: Question re. Business Income Statements posted by IB (NJ) on August 12, 2008 at 07:08:41:

IB,

I probably shouldn't be using the word "expense". I do it the same way Ken does, where everything is an asset until it sells. The numbers will not show up on a P&L until the property sells.

The only thing I do differently than Ken is that I don't track items as expenses that flow into the next year. I see why he's doing it (to get the immediate deduction), but I don't do it that way.

I am referring to dealer properties that we hold for less than one year.

I wonder if the folks you're presenting to will understand the ins and outs of COGS, etc. I know they might be bankers, but do they know CPA jargon? I wonder if you might be complicating it too much.

--Natalie

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