Hello,
If our llc is a single person owned llc and we file the income through the 1040-C, we would add the purchases not sold under inventory and the sold property purchase price under COGS??? Like is this the proper methode?? Then when the next year comes by we would then mention the remaining property as inventory and the new sold property as COGS right???. My confusion here is wouldn't this mean that till the inventory comes down to 1 purchase that the deductions will show any actual profit against the purchase. If I purchased 4 property in the first year sold 1 then I add the 3 as inventory and 1 I'm COGS and the gross sales amount from the 1 sold the income would be negative same for next year if any sale occurs and the inventory goes down to 2 and now the cogs is 1 this deduction would still be higher than the single property sold. Please correct me on this I am a bit confused.
