Deductions & credits
In the Income section, under Self-Employment, EDIT your Business. Make sure you indicated that your business has an Inventory in 'Tell us More About Your Business'. You're then asked 'How do you Account for your Inventory?'
You're then asked for the value of your inventory at the beginning of 2025, and at the end of 2025, and on the next screen enter the amount of 2025 purchases, and value of unsalable inventory as 'Withdrawn for Personal Use'.
- When you remove items for personal use or because they are unsalable, you must remove their original cost from your purchases or inventory value.
- Items withdrawn for personal use are not deductible, nor is the "lost revenue" from not selling them.
