Dietary supplement inventory shrinkage reduces cost of goods sold for tax purposes
by Joel Rothman | Nov 2, 2006 | NutriSupLaw
The US Tax Court has held that when a dietary supplement manufacturer suffers “shrinkage” of inventory due to spoilage of supplements it may reduce its cost of goods sold, and its corresponding tax burden, by the value of the lost supplements.
TOTAL HEALTH CENTER TRUST, BONNIE STEJSKAL, TRUSTEE, ET AL. v.
COMMISSIONER OF INTERNAL REVENUE,
Docket Nos. 8793-05, 8794-05, Filed October 24, 2006.
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Joel B. Rothman represents clients in intellectual property infringement litigation involving patents, trademarks, copyrights, trade secrets, defamation, trade libel, unfair competition, unfair and deceptive trade practices, and commercial matters. Joel’s litigation practice also includes significant focus on electronic discovery issues such as e-discovery management and motion practice relating to e-discovery.