Where do I record my Cost of Goods for my eBay reselling business? TT defined inventory as "goods not sold". Do I record COG as business expenses?

[Rhom]

You example is a bit confusing as i believe you added and extra 0 in your original example of the widgets you purchased before the business started.

Also trying to better understand this topic as I want to start reporting my inventory as well and didn't in my first years past as it was inventory purchased before my business started, and I didn't quite understand the Schedule C COGS model much at the time. 

[Carl]

@Rhom for inventory there's a section in the TTX program for reporting this. The only way to actually see that section in the program is if you indicate that your business "DOES" have inventory in the business profile section. Then you need to scroll up and read my post with a date/time of February 15, 2023 11:59 AM.

[M-MTax]

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@Rhom wrote:

You example is a bit confusing as i believe you added and extra 0 in your original example of the widgets you purchased before the business started.

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It's not just confusing, it's an absolute mess written by someone who doesn't even get the basic concept. I'd recommend ignoring the entire post completely.

If you bought inventory in the previous year and started your business on January 1st of the following year, then, generally, the cost of the inventory is your beginning of the year inventory for the purposes of Schedule C. Then you simply add to that figure any purchases during the tax year and subtract your end of year inventory from that total (i.e., beginning of year inventory PLUS purchases MINUS end of year inventory EQUALS cost of goods sold).