If your products expired during the year 2022, their total affects your ending inventory number. So, enter your beginning inventory number as you would normally into TurboTax. The remaining TurboTax questions should mirror the IRS Schedule C Part III lines 36-41. Line 36 asks for any purchases less personal item costs. Line 37 asks for cost of labor, not including your own. Line 38 asks for Materials and Supplies. I would subtract the value of expired products from this number. Line 39 asks for any other costs. If you had expenses associated with removing expired products, list those expenses here. Line 40 is the total of lines 35 (Beginning Inventory) through line 39. Line 41 asks for your Ending Inventory number.
