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In this edition we look at the tax treatment of trading stock. While bookkeepers do not directly deal with the tax aspects of trading stock, it is important that they understand the effect that trading stock has on client's taxable income particularly given the central role of trading stock in most businesses. Specifically, issues such as: •Donated stock •stock taken for personal use, and •The treatment of lay-bys are matters that bookkeepers are likely to deal with from time to time. A working knowledge of this topic is therefore essential