I liquidated my inventory at a major loss I closed my business. How do I account for that loss?

[MinhT · Accepted solution]

The loss is the consequence of your selling your inventory below cost. You report in TurboTax the actual amount you received when you liquidated the inventory. You also enter all other expenses you have for the business.

Your business loss will offset your other income for the year and if there is still a net operating loss (NOL), this loss can be carried backward to the 2 preceding years or carried forward to future years.