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Deductions & credits
@BTCrafting wrote:I wanted to check if a negative number is allowed for Cost of Goods Sold....
It is not allowed and, in fact, makes no sense since it indicates you sold a negative amount of merchandise.
If you are a small business taxpayer, you are not required to keep an inventory.
See https://www.irs.gov/publications/p334#en_US_2021_publink10005555
If you want to keep an inventory, then you should use the value as set forth by @ColeenD3 in the initial response to this thread.
‎April 18, 2022
8:15 AM