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New Member
posted May 31, 2019 5:33:02 PM

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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Level 5
May 31, 2019 5:33:03 PM

You will simply reduce your ending inventory by the amount you paid for the inventory you are disposing of, is obsolete, etc.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.

1 Replies
Level 5
May 31, 2019 5:33:03 PM

You will simply reduce your ending inventory by the amount you paid for the inventory you are disposing of, is obsolete, etc.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.