Inventory/Cost of Goods isn't showing

[misd1]

I started Reselling on Poshmark in 2021 so I started with 0 inventory.  I bought $5055 in inventory.

I am using the accrual method.  When I enter my Cost of Goods sold which is $2156, (I sold $5252 worth ) it isn't showing up or adjusting my net earning to reflect that .  Am I doing something wrong?  I have already entered business expenses which equal $2633.  

[Anonymous_]

In the program, you first need to indicate you maintain an inventory.

Subsequently, you will enter your beginning and ending inventory along with any purchases you made during the tax year.

[JamesG1]

Maybe I misunderstand the numbers.  $5,055 in inventory purchases less cost of goods sold of $2,156 results in ending inventory of $2,899.

Try entering the following in TurboTax Online Self-Employed, to report $2,156 in cost of sales for your self-employment activity, 

• Click Yes at the screen Do you have inventory to report.
• Enter $0 for beginning inventory at the screen Let's get the value of your inventory.
• Enter $2,899 for ending inventory at the screen Let's get the value of your inventory.
• Enter $5,055 for Cost of Purchases at the screen Let's get the costs of your goods.

At the screen OK, Here is your business gross profit, do you see a report of cost of goods sold of 2,156?

[misd1]

Thank you for your quick response.  I have done that.  Then I indicated that I use the cost method to value inventory.  At the beginning on 2021 I had no inventory.  For the end of 2021, so I enter the amount I had total, or only what I have left after selling items during 2021?

I had $5055 total inventory purchased for the year.  I sold $2146 (the value of the inventory sold) After sales, my value of inventory left is $2908.    So for the end of 2021 #, do I put in the total I bought for that year ($5055) or only the remaining Inventory ($2908)?

Thanks!  (I'm using the accrual method, not the cash-can't remember if I mentioned that)

[misd1]

I'm using the Turbo Tax Home and Business, the downloadable version.  It doesn't allow me to enter 0 for the beginning inventory, since I started my business in 2021.

[JamesG1]

$5,055 in inventory purchases less cost of goods sold of $2,147 results in ending inventory of $2,908.

Try these entries to report inventory in TurboTax Desktop Home & Business, 

• Go to Business / Business Income and Expenses / I'll choose what I work on / Business income and expenses / Profit or loss from business.
• Click Start / Update to the right.
• Click Edit to the right of the activity.
• At the screen Your Business, scroll down to Inventory / Cost of Goods Sold.
• Click Start / Update to the right of Inventory and Cost of Goods Sold.
• Click Yes at the screen Do you have inventory to report?
• Enter $0 for beginning inventory at the screen Let's get the value of your inventory.
• Enter $2,908 for ending inventory at the screen Let's get the value of your inventory.
• Enter $5,055 for Cost of Purchases at the screen Let's get the costs of your goods.
• At the screen OK, Here is your business gross profit, do you see a report of cost of goods sold of 2,147?

At the screen Did you use the cost method to value inventory, what did you answer?  Did your answer change the screens listed?

[Anonymous_]

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@misd1 wrote:

I'm using the Turbo Tax Home and Business, the downloadable version.  It doesn't allow me to enter 0 for the beginning inventory, since I started my business in 2021.

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If you started the business in 2021, and indicated that in the program, the first inventory screen you should see will appear as follows:

[Anonymous_]

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@misd1 wrote:

I had $5055 total inventory purchased for the year.  I sold $2146 (the value of the inventory sold) After sales, my value of inventory left is $2908.

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With beginning inventory of $0, ending inventory of $2,908, and purchases during the tax year of $5,055, your cost of goods section should appear as follows: