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Post by 57roses on Mar 30, 2021 2:52:37 GMT
I moved out of my small shop last year mainly due to taking time off because of covid concerns. I ended up donating some of my inventory. My question is where do I account for this on my taxes? I don't do my own taxes but want to be able to put the amount somewhere in GoDaddy so it will be reflected on the schedule C that I can print out. Thanks!
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val2525
Chaos Manager
Posts: 30,649
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Post by val2525 on Mar 30, 2021 16:32:09 GMT
"Donated" inventory is expensed as part of cost of goods sold (it reduces your inventory at year end, thus increasing your COGS).
You cannot take a charity donation deduction for inventory donated, that would be double dipping.
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Post by 57roses on Mar 30, 2021 16:46:13 GMT
Thank you Val. That is what I was thinking but wasn't sure. I figured it should be reflected in inventory on hand at the end / beginning of the new year.
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