Do I have to report inventory? Home and Business, under Cost of Goods Sold, has a window saying I don't have to because I have less than $1,000,000 in sales.
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Returning Member

Do I have to report inventory? Home and Business, under Cost of Goods Sold, has a window saying I don't have to because I have less than $1,000,000 in sales.

2018 Turbotax Home and Business, under Business Income & Expenses has the category, "Inventory/Cost of Goods Sold." It asks you if you have inventory to report, but there is a question you can click on--"What counts as inventory"--that pops open a window that says, "If you have less than $1,000,000 in sales or receipts for each of the last three years, you are not required to report inventory." I am a sole proprietor who has sales for just one year (so I think that one year is used instead of three) who had sales of way less than $1,000,000 this year. The Inventory/Cost of Goods Sold category says, "If you're not reporting inventory, but had material & supply expenses, enter them as supplies under expenses.

The only possible interpretation of this is that I can avoid doing an inventory, and just list my material & supply expenses as supplies under expenses. Which flies in the face of other responses to similar questions I've seen here and articles I've read by CPAs online. Is Turbotax correct?

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Level 15

Do I have to report inventory? Home and Business, under Cost of Goods Sold, has a window saying I don't have to because I have less than $1,000,000 in sales.

You have the option to report the COGS in the inventory section  OR   the expenses section usually under the supplies option  but you MUST report all income & expenses on the Sch C ... you may not leave any out to manipulate the bottom line of the form 1040 or any other credits. 

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New Member

Do I have to report inventory? Home and Business, under Cost of Goods Sold, has a window saying I don't have to because I have less than $1,000,000 in sales.

So does this mean that if your business makes less than $1M in gross receipts, then you’re not required to report any inventory carryover? And so you can simply report whatever goods were purchased to make or sell your product as a material expense? Thanks 

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Level 10

Do I have to report inventory? Home and Business, under Cost of Goods Sold, has a window saying I don't have to because I have less than $1,000,000 in sales.

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