Get your taxes done using TurboTax

The product you are buying for $100 per month I assume is available for resale to customers.

It would be entered in the inventory section under Purchases.

I put an example below, you would enter your actual inventory on your return. 

This is how it works

Beginning Inventory   $0   Jan 1, 2016

Purchases                  $1,200

Ending Inventory          $400   (for example let's say you sold $800 worth of the purchases)

Cost of Goods Sold    $800   This is deduction on your taxes.  

TurboTax does this computation when you enter the Beginning Inventory, Purchases and Ending Inventory.  

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