My wife and I have been operating our business for years as a Qualified Joint Venture. We each file our own Schedule C on our jointly filed taxes each year. She retired as of September 1 and will not be working in our business anymore. We are inventory based, so she has been doing a COGS calculation as part of the inventory is hers. Now, 100% of the inventory will be mine. How do I show this on paper as my inventory number is going to change abruptly. Do I buy her inventory for her % of value and then she would have zero inventory on her final filing for the business? And that would raise my inventory to the correct value for 100% and her value to zero? Thanks in advance.
