My circumstances are a bit different which is why my COGS is different from the norm. I started a reselling business in 2021 so no manufacturing, labor, materials needed and also, the products were purchased by another person. I received instruction after explaining the situation to put my Purchases as 0 due to that.
So Lines 35-39 for Part 3 are all 0 but Line 41 for my End of Year Inventory is let's say, 500. Line 42 says to substract Line 41 from the sum of Lines 35-39 which would be a negative number.
I wanted to check if a negative number is allowed for Cost of Goods Sold because multiple tax filing sites I used set Line 42 & Line 4 as 0 (or left them blank) and I wanted to make sure this is correct to submit and not the software going a big wonky. Thank you!
