DMarkM1
Expert Alumni

Get your taxes done using TurboTax

Yes.  You are correct the cost of the clothes that you acquired for resale are inventory costs.  First, be sure you indicated in the inventory interview that you use "cost" to value your inventory.  Next, in the box "Beginning of year inventory value" you will enter the cost of your inventory on 1 Jan 2022.  For the "End of Year value" the cost of your inventory on 31 Dec 2022.  

 

The check box is asking if there was a difference in your end of year 2021 and beginning of year 2022.  That is very rare to have different inventory on last day of prior year to first day of current year.  So just leave the box blank.

 

On the next page you can enter the costs of purchases throughout the year and any other costs associated with the inventory as noted there.

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