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MKkristian
New Member

I had no inventory at the beginning of the year but around August, I had inventory so do I enter zero for the beginning?

 
11 Replies
DS30
New Member

I had no inventory at the beginning of the year but around August, I had inventory so do I enter zero for the beginning?

It depends.

Yes - If you were in business for the entire calendar year, then your beginning inventory would be the inventory you had on hand on 1/1/2016. In this instance, your beginning inventory would be zero "0" .

No - If you were not in business until August, then your beginning inventory will be the amount of inventory that you had on hand when you started your business. So if the business start date is August and you have inventory on that date, then use the amount of inventory on that August date as your beginning inventory number.

Please refer to this IRS link for more information about Business Expenses

MKkristian
New Member

I had no inventory at the beginning of the year but around August, I had inventory so do I enter zero for the beginning?

I was in business all year but didn't get inventory until August. So my beginning of the year inventory would be zero?
DS30
New Member

I had no inventory at the beginning of the year but around August, I had inventory so do I enter zero for the beginning?

Yes, that is correct.
MKkristian
New Member

I had no inventory at the beginning of the year but around August, I had inventory so do I enter zero for the beginning?

Completely different question. My dad has stage 4 lung cancer, I am his care giver. Can I deduct him for my taxes?
DS30
New Member

I had no inventory at the beginning of the year but around August, I had inventory so do I enter zero for the beginning?

I'm sorry to hear that.

It depends.

you will be able to claim your father as your dependent if he meets all the requirements for being a qualified relative.
You could claim an elderly parent as dependents even if he don't live with you for the entire year as long as he meets the qualifying relative test. You will not need to include his SSI when determining his gross income test but you will need to take this money into account when determining the support test.
According to the IRS:
• You can’t claim any dependents if you (or your spouse, if filing jointly) could be claimed as a dependent by another taxpayer. 
• You can’t claim a married person who files a joint return as a dependent unless that joint return is filed only to claim a refund of withheld income tax or estimated tax paid. 
• You can’t claim a person as a dependent unless that person is a U.S. citizen, U.S. resident alien, U.S. national, or a resident of Canada or Mexico.
• You can’t claim a person as a dependent unless that person is your qualifying child or qualifying relative. 
An individual must meet all 4 of these requirements in order to be considered your Qualifying Relative:
1. Not a Qualifying Child: The individual cannot be your Qualifying Child and cannot be someone else's Qualifying Child. They are a Qualifying Child if they meet all the requirements, whether or not they are claimed as a dependent
2. Relationship: The person must either have lived with you for the entire year as a member of the household (a person who is not actually related to you may meet the requirements in this way), or be related to you in one of the following ways: your child, stepchild, grandchild or other descendant of one of your children (or stepchildren or foster children), son-in-law, daughter-in-law, brother, sister, half brother, half sister, stepbrother, stepsister, brother-in-law, sister-in-law, parent, stepfather, stepmother, father-in-law, mother-in-law, grandparent, and, if related by blood, aunt, uncle, niece, or nephew. Remember that a child whom you legally adopted is always considered to be your child. Also note that, for the purposes of this requirement, divorce or death does not change any relationship which was established by marriage (e.g. son-in-law, daughter-in-law, etc.)
3. Gross Income: The person must have made less than $4,000 in gross income during 2016.
4. Support: You must have provided more than half of the individual's total support during the year
You can include medical expenses you paid for an individual that would have been your dependent except that:
1. He or she received gross income of $4,050 or more in 2016,
2. He or she filed a joint return for 2016, or
3. You, or your spouse if filing jointly, could be claimed as a dependent on someone else's 2016 return
Click this link for more additional information about claiming elderly parents as dependents <a rel="nofollow" target="_blank" href="https://turbotax.intuit.com/tax-tools/tax-tips/Family/Steps-to-Claiming-an-Elderly-Parent-as-a-Depen...>
MKkristian
New Member

I had no inventory at the beginning of the year but around August, I had inventory so do I enter zero for the beginning?

He is on SSI and gets a VA pension, so I don't have to include those in filing when I claim him as my dependent?
DS30
New Member

I had no inventory at the beginning of the year but around August, I had inventory so do I enter zero for the beginning?

no, but you need to include these amount when determining if you provide more than half of his support.
MKkristian
New Member

I had no inventory at the beginning of the year but around August, I had inventory so do I enter zero for the beginning?

Okay Thank you.
DS30
New Member

I had no inventory at the beginning of the year but around August, I had inventory so do I enter zero for the beginning?

You are very welcome.
MKkristian
New Member

I had no inventory at the beginning of the year but around August, I had inventory so do I enter zero for the beginning?

I didn't file taxes last year because I didn't make enough to file, how can I determine the tax credit allowed for my dad?
DS30
New Member

I had no inventory at the beginning of the year but around August, I had inventory so do I enter zero for the beginning?

I am not sure. But if you have any more questions, please post them separately so that other AnswerXchange users who have a similar question may benefit from your answer. Thank you.
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