Get your taxes done using TurboTax


@chuck816 wrote:

If I report BOY and EOY inventory this year, AND didn't sell any of that inventory, then my taxable income increases.  Which is infuriating that IRS is taxes us on purchased inventory.


You are not taxed on purchased inventory.

 

If you are not required to maintain an inventory, you can simply enter the dollar amount of inventory you sold during the year as an expense (supplies).