Back again. We had inventory last year but did not sell anything. This year we sold 3 items. We have less than 1,000,000 in sales. Do we have to report inventory this year? I did not pick up on this nugget of info below last year when using Turbo Tax:
Inventory is a company's merchandise, raw materials, and finished and unfinished products which have not yet been sold. Reporting inventory allows you to match your income with the expenses incurred in producing it, and calculate the cost of producing that income. If you have less than $1,000,000 in sales or receipts for each of the last three years, you are not required to report inventory. If you have inventory records you may want to report your inventory.
