I use cash method on my tax return, can i deduct all inventory cost at the same tax year of purchase instead of waiting the inventory is sold. If so, should i use the cost of goods sold form, or deduct them as "Other deductions"
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If you don't keep an inventory, you can use the Other Deductions category. Do I have to keep inventory?
Under the cash method, I can deduct inventory as other deductions or "COGS",
Under accual method, i can only deduct inventory as on "COGS",
Am i correct?
A couple of comments regarding your questions:
Thank you so much! If i cash method, can i still use accual method for inventory only meaning that i will use actual beinning inventory + purchase - actual ending inventory (i don't want to deduct full inventory cost, but i want to cash method for my tax return)
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