TurboTax

File with experts
File your taxes
Experts at your fingertips

An expert helps with your taxes, or does them for you
TurboTax Expert Full Service

TurboTax Expert Assist

TurboTax Self-Employed
Prior year taxes
File myself
File myself
Do it yourself

We'll guide you step-by-step
TurboTax Do It Yourself

TurboTax Self-Employed

TurboTax Desktop
TurboTax Free

Activate your product

Prior year taxes
Business
Business
Business taxes

Get your T2 corporate return done right, your way
TurboTax Business

TurboTax Business Desktop
Tax situations
Tax situations
Tax situations

Find extra guidance for your big life moves
For investors

For 25 and younger

For self-employed

For new to Canada

For life changes
Resources
Resources
Resources

Explore tax tools, get tips, and read reviews
Personal income tax calculator

RRSP savings calculator

Learning hub

TurboTax support (FAQ)

TurboTax community
Pricing

Level 4

Question

Home Business Deduction

Forum|Forum|6 years ago
February 7, 2020
12 replies
51 views

I have a home business for consulting work and I sold leggings. This past year I sold the remainder of my inventory of leggings at a loss, about 1/2 of my cost. Where do I account for this under the expenses of my home office? And how do you label it?

Not A Product Question

Alumni - Intuit

You report them as the cost of goods sold.

Your beginning inventory is your ending inventory from last year.
Any purchases of leggings in 2019 is added as purchases.
Then ending inventory, (if any), is subtracted to arrive at the cost of goods sold.

If you already deducted the cost of the leggings in a prior year, then your beginning inventory is zero. You can't deduct the expense twice.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

Level 4

I have not deducted anything previously.

Alumni - Intuit

Ok. So you can deduct the cost of the leggings as Cost of Goods Sold on Schedule C.

You don't need to track inventory, or report end of year inventory if you claim it all as Cost of Goods Sold for the year.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"