I closed my small business this year. Is it alright that turbo tax is reducing my income by counting the inventory as a loss therefore reducing my taxable income?

[eddiep62]

I closed my small business with no sales for the year 2018. I still have the inventory on hand but it is being subtracted from my taxable income as a loss by Turbo Tax. Is this allowed? 

[MichaelL1]

You enter the amount of inventory withdrawn for personal use so that the amount you kept for personal use isn’t included in your Cost of Goods Sold.

If you did not withdraw it for personal use, then reduce the loss by the value it worth yet, which might not be much if the business closed.

You are correct in looking at this.  I don't know your business or what the items were so you will have to determine the value when the business ceased to exist.

[MichaelL1]

This link might help as similar situation to yours:  <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/2942510-business-closed-inventory-donated-to-charity-no-business-c...>