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kbetau
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How do I account for inventory adjustments (inventory damaged and/or lost in shipping), obsolete inventory (donated), and product samples that will never be sold

 
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How do I account for inventory adjustments (inventory damaged and/or lost in shipping), obsolete inventory (donated), and product samples that will never be sold

You will simply reduce your ending inventory by the amount you paid for the inventory you are disposing of, is obsolete, etc.  There is no further deduction allowed for donating inventory since cost value will be reported as the reduction in inventory on your Schedule C.

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How do I account for inventory adjustments (inventory damaged and/or lost in shipping), obsolete inventory (donated), and product samples that will never be sold

You will simply reduce your ending inventory by the amount you paid for the inventory you are disposing of, is obsolete, etc.  There is no further deduction allowed for donating inventory since cost value will be reported as the reduction in inventory on your Schedule C.

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