it depends. You can use an amount as an expense after you withdraw any amounts for personal use. Any items you give away would be withdrawn for personal use. In other words, you must track what you do with the inventory until you completely dispose of it, either as a sale or junked, or given away for personal use. Any amount given away is not a business expense.
Hi DianeW777,
My apologies if I am being dense.
1. You say I can take an expense for personal use
2. But then, anything given away is personal use
2. Then, in the last sentence, you say that anything given away is not business expense.
the first and last sentence are the opposite of each other. What am I missing?
Thanks.
The response from @DianeW777 says "You can use an amount as an expense after you withdraw any amounts for personal use." This means you can NOT expense anything you use for yourself or give away. Whatever you have leftover after you take out what you are using for yourself would be a business expense.
The first and last sentences are saying the same thing, just different wording.