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.