Starting a brewery, but sales for 2016 were only t-shirts. How should I classify my business and products sold? We have only acted like a retailer up to this point.

[joshtomaka]

I am using Turbo Tax Business and early on it is asking me for my business industry and the type of products sold. Our actual classification is a brewery, but since we haven't even opened yet and our only sales for 2016 are t-shirts, do I mark that we are a retailer for 2016?

[GeoffreyG · Accepted solution]

We understand your question, and what you suggest sounds like a reasonable approach.

If you indicate to the program that you are a brewer (for 2016), it will most likely lead you down the pathway that is most appropriate for a manufacturer (with raw materials, work-in-process inventory, finished goods, etc.).  However, in your current capacity as mainly a retailer, that would seem a more appropriate classification for your present business activities, and the correct way to complete your company tax return.

Of course, you can always change that classification when you complete and file your tax return next year (using TurboTax Business or otherwise), assuming that your brewery commences production this year (2017) and you begin selling your main (intended) product.

Thank you for asking about this.

[joshtomaka]

Great, thank you!