Anyway I appreciate and thank you for your help, the important thing is to clarify the situation... so lets confirm... so above you said :
"No, you can't do that. A negative number won't result if you do the computation correctly. The way the computation works is this:
PLUS: Purchases (less items withdrawn for personal use) For this they mean subtract the items you withdrew for personal use from the purchases you made this year. Not what you took from last year's inventory. That part will come later."
So you said negative in line 36 will not result.
But now you are saying a negative number will result.
So a negative number WILL result and it can be shown on final tax return. So is that how you show when you pull inventory from existing? And so line 36 is not just for this year (as you said above) but for puling from previous years inventory too right?
And so we will not make any change to beginning inventory correct? That stays same as ending of prior years then right? all we do is enter purchases and withdrawals so a negative will result on line 36 right?....
(I wasn't talking about entering directly negative to line 36 anyway, I was talking about the result that will be shown on line 36)
And the reason of doing this (pulling from existing inventory) on line 36 which will be negative, is because, if we didn't do it here but simply reduced ending inventory on line 41 to zero, that would be like reducing tax liability and for an inventory you take to yourself (but not sell or throw away but still keep to yourself) which we cannot do , and you can reduce ending inventory to zero only if you sold or threw away those inventory but not possess it anymore right?
