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crombieva
New Member

I sold my sole proprietorship home soap business in 2017 and a friend bought out all my remaining supplies/inventory. How do I report this inventory sold in TurboTax?

The supplies I sold were what my friend would use in her own soapmaking business.  It was about $3,000 worth of supplies that I sold for about $700.00.

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CathiM
New Member

I sold my sole proprietorship home soap business in 2017 and a friend bought out all my remaining supplies/inventory. How do I report this inventory sold in TurboTax?

Enter your ending inventory as $0 in TurboTax, this will write off the remaining inventory. Then you can report the $700 salvage as "Other income".  It goes on Line 6 of Part 1 Schedule C, between Gross Profit (Line 5) and Gross Income (Line 7). 

This is the easiest way to do it. As long as the $700 income is on there, the IRS doesn't care where you put it.  The end result is the same.

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1 Reply
CathiM
New Member

I sold my sole proprietorship home soap business in 2017 and a friend bought out all my remaining supplies/inventory. How do I report this inventory sold in TurboTax?

Enter your ending inventory as $0 in TurboTax, this will write off the remaining inventory. Then you can report the $700 salvage as "Other income".  It goes on Line 6 of Part 1 Schedule C, between Gross Profit (Line 5) and Gross Income (Line 7). 

This is the easiest way to do it. As long as the $700 income is on there, the IRS doesn't care where you put it.  The end result is the same.

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