under GAAP can wine sales be capital gains?
you craft the product, hold it for a year or more, then you sell it to distributors.
Guy I knows family owns a winery and he said that they are taxed the same as income.(but he's not really actively involved in the business)
I told him that they should open a holding company.
1. create product
2. sell to holding company at cost
3. when holding company sells to distributors, the difference in price is capital gains
I am not a CPA and only took 2 accounting courses....just looking for an easy explanation as to why this can't be done if it can't be done.
This post was edited on 3/21 at 4:56 pm