How do I account for trading stock obsolescence in my tax return as a sole trader? Also do I show this in cost of sales or is there a seperate section in the tax return for this
opening stock - 100 units
purchases - 0
closing stock - 100 units
cost of a unit = $70
market value of a unit = $100
50 units of closing stock are obsolete
with the scenario I've provided does it not make sense to go with cost as opposed to market value. Opening stock $7000 + purchases $0 - stock write-off @ market $5000 = closing stock of $2000 and a deduction of $5000 vs opening stock $7000 + purchase $0 - stock write-off @ cost $3500 = closing stock of $3500 and a deduction of $3500 thanks
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