When you're filing your Schedule C, how do you 'report' or 'keep track of' the Worthless Items taken out of inventory?
Basically, you'd track that on your own books. Then just include your cost for those items in the COGS for that year, so that you can deduct from the current year's business income, what you paid for the inventory that became worthless during the year and was therefore dis-guarded.
Around my neck of the woods, this is most common in the food service industry where food goes bad after a period of time and can not be sold even to the pig farmers for them to use as slop.
