Good day, this may sound similar to a question I asked last week, but I added more information.
This is in regards with my SMLLC and the “Does your business have inventory or cost of goods sold?” Last year, I went with this method, but I want to make sure I am doing it correctly. For the 2022 tax year, I sold photography calendars. Under Cost of Goods Sold Line 36 I stated I spent $1000 to purchase the calendars and had an inventory cost of $40 line 39 at the end of the year, which I did not sell until 2023. Now I am doing taxes for the 2023 tax year, I spent another $1400 on calendars $1100 my cost, of which I sold in 2023, and $300 my cost of calendars in 2024. I ended up making around $6,000 total selling the calenars.
So when doing my 2023 Taxes: Should I put $40 Line 35, $1100 Line 36, and $300 Line 41?
Second question – I purchased shipping packages/cardboard to mail the calendars, but did not keep inventory, I just used all of the supplies as I old the calendars – should I put that on line 38 under Costs of Good Sold, combine it with like 36, or put that expense somewhere else on my schedule C?
Thank you!
