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Get your taxes done using TurboTax
Because I am a small business that makes under $26 millions my understanding is that I can follow the cash basis accounting method and deduct the entire $2,500 which was my total expense of the year per my example. How do I deduct the remainder $2000?
I am an online retail (if that helps).
1) If you are maintaining an inventory, use the COGS section only:
BOY $0 + Purchase $2,500 - EOY $2,000 = COGS $500... where do I deduct the other $2,000 since my total expense of the year was $2,500?
2) If you are not maintaining an inventory, use "Supplies" as an expense (based on what you sold) and do not enter any figures in the COGS section.
Supplies sold: $500.... where do I deduct the other $2,000 since my total expense of the year was $2,500?
March 10, 2023
3:51 PM