I have been selling children's clothing online for quite sometime now and have accumulated a quite an amount of inventory. Also my daughter operated 2 brick and mortar stores selling the same items. She never owned any inventory outright. I left some of my inventory on consignment with her. We are now intending to incorporate and join the 2 sole proprietorship into 1 corporation. What is the best way to go about the inventory? Does it need to be rolled over using 85 roll over election or can I transfer it for a promissory note and not roll over. Also some of the inventory is now obsolete and I had never done any write off through the years. If inventory has to be rolled over, how do you determine the fair market value or shall we use the acquisition cost? Thanks in advance.
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I have been selling children's clothing online for quite sometime now and have accumulated a quite an amount of inventory. Also my daughter operated 2 brick and mortar stores selling the same items. She never owned any inventory outright. I left some of my inventory on consignment with her. We are now intending to incorporate and join the 2 sole proprietorship into 1 corporation. What is the best way to go about the inventory? Does it need to be rolled over using 85 roll over election or can I transfer it for a promissory note and not roll over. Also some of the inventory is now obsolete and I had never done any write off through the years. If inventory has to be rolled over, how do you determine the fair market value or shall we use the acquisition cost? Thanks in advance.
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