Small Business deduction question

Forum|Forum|5 years ago
March 29, 2021
2 replies
32 views

I own a small brick-and-mortar business that sells packaged food to consumers. Some of the food expired before it sold. Can I deduct the cost of the food that didn't sell? Some of this food expired when the government shut everything down due to COVID, and my business was closed for 2 months. Thank you for your help.

Not A Product Question

KrisD15

Level 15

Yes, you can always expense the cost of food whether you sell it or throw it away, it is an expense.

Only what you receive in sales is income.

Income (Sales) - Expenses = Profit

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Mike9241

Level 15

if you're already not accounting for inventory, i.e. expensing the purchases in the year made, you can not take a second deduction for the part that spoiled.

Mike9241