writing off stock

[Batfink]

I have the exciting task of properly sorting my accounts out for my business's tax return.
All's good except I have a few items of stock i need to write off.
Question is how much can I write off?
Cost price or selling price?

[wattsm666]

Stock should only be recorded at Cost in your accounts, which you can then write off. You cannot write off the selling price unless you work at Enron or the like........

[Eric Mc]

Lower of cost or selling price.

Cost price is normal.

If the retail value of the stock on hand is less than what it cost originally, it should have been reduced to its new lower value as soon as it was realised it was overvalued.

When it comes time to write it off, it would then automatically be written out of the accounts at this new lower value.

Edited by Eric Mc on Wednesday 23 April 13:33