I sold 1 product for $4
I have made $2 profit but I want to purchase more products with the $2 profit and original $4 = $6
Because I reinvested the money in the business do I have to declare any income to centerlink because in theory I now have $0 ?
Thank you in advance
Paul

If you spend the $2 on more stock to sell then your profit is $0.

ie:
purch $4
purch $2
total purch = $6

sales = $6

sales - puch = $0

of course you then have the issue of closing stock, which is income for accounting purposes. So in ACCOUNTING terms you have made a profit of $2.

But for TAX purposes you can elect to ignore changes in closing stock in many cases....so for TAX purposes you have $0 assessable income.

ta-daaaaa!

cheers
BC