You are not being taxed on your unsold inventory or because your inventory is higher.
For example, if your beginning inventory was $150,000 and you purchased $300,000 worth of inventory during the year, then you need to subtract your ending inventory from that $450,000 figure. The difference is your COGS.
If you sold nothing, then your COGS would be $0 ($450,000 beginning inventory plus purchases minus $450,000 ending inventory).
If your ending inventory was $350,000, that would mean you sold $100,000 worth of inventory.
