If item purchased for resell but doesn't sell (disposed), does it lower the tax obligation? | Selling

itolduandso · 2023-06-19T23:13:05.278000Z

I know this is not a tax forum and I should discuss with tax advisor, okay. But I am wondering how other people do this. I am talking about simple accounting, purchase inventory + other expenses as cost and total sales as revenue ... tax on the difference etc.The question is, since I am technically not writing off inventory because I am not doing inventory, if the item does not sell and it is disposed, can I still consider the original cost of purchase of it as cost for tax purposes? In other words, does it make a difference for tax purposes if the item actually sells for 0.01 dollar or it is disposed (no sale)?

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If item purchased for resell but doesn't sell (disposed), does it lower the tax obligation? | Selling | eBay Canada EN