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New Member
posted Apr 17, 2022 4:06:40 PM

My End of 2020 inventory field is blank. Should I use 0 for my Beginning of 2021 inventory?

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5 Replies
Level 15
Apr 17, 2022 4:09:59 PM

You end of year inventory for 2020 is your beginning of year inventory for 2021.

 

Did you have inventory on hand at the end of 2020 (or did you sell all of your inventory)?

New Member
Apr 18, 2022 7:15:04 AM

Thanks, @Anonymous_.

Yes, got that---I understand the basic premise of EOY last year being Beginning of Year this year. 

The problem is something else.

Whatever TurboTax directions I followed last year resulted in the 2020 EOY inventory value field being automatically populated in Beginning of 2021 as... blank. Not even a 0. Maybe I didn't have an inventory value last year? This business has been more of a side income thing, gradually evolving into a more established source of income, and perhaps last year I chose a more simplified method. 

As far as I can tell, I should perhaps choose simplified options only this year and see if it keeps me out of questions that are difficult to answer.  

Level 15
Apr 18, 2022 7:20:55 AM

@sarahblexrud 

 

If you are a small business taxpayer (most likely), you are not required to keep an inventory.

 

See https://www.irs.gov/publications/p334#en_US_2021_publink10005555

New Member
Apr 20, 2022 8:56:30 PM

The TurboTax expert who spoke with me on the phone helped me through it. She gave a different answer from yours regarding the necessity of doing so this year, and how to present the information properly. Thank you for the link but it was no copacetic with my situation. 

Level 15
Apr 21, 2022 6:39:14 AM

Yes, if you have been maintaining an inventory in previous years, then you should continue to do so.

 

Regardless, I am glad to hear you were able to get this issue resolved.