Closed Business and Inventory

[martpa1]

I'm trying to help my daughter close her LuLaRoe business in 2020 so want to guide her in keeping accurate records for her tax return next year. She will have an inventory carry forward from 2019. She will have a close out business sale and try to sell as much as she can. If she has leftover inventory (which I'm 99.9% sure she will), can she close out a business with leftover inventory or does it need to be zero? How do you get it to zero without it impacting your tax liability?

[DavidD66]

If she can't dispose of all of it, just record a sale of the remaining inventory for $1, and donate it to charity.