You should be using a reasonable fair-market value for your inventory you sold. Also, be sure if you made any purchases and still hold them in inventory you have entered the balance there correctly rather than just the expense of the purchases.
To enter your inventory balances in TurboTax you can follow these steps:
- With your return open in TurboTax, search for Schedule C and then select the "jump to" link to go to the self-employed section.
- If you're new to this section, we'll ask for info about your business first. Eventually, we'll ask if you had any business-related expenses; answer Yes
- Otherwise, select Review next to your business and then the Add Expenses for this work button.
- When you get to the First select the expenses you know you had screen, scroll down and select either Supplies or Inventory.
- If you don't have inventory but want to report materials and supplies as COGS, select Inventory and then enter 0 for both beginning and ending inventory values.
- Follow the onscreen instructions to completion.
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