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Deductions & credits
Inventory converted to persoanl use goes on line 36 of schedule c as a negative number.
Items donated to charity first are converted to personal use (see above); then you deduct them on schedule A as a charitable contribution.
You should put 0 at the ending inventory. That means anything discarded/destroyed is written of as "Cost of goods sold".
‎June 6, 2019
5:41 AM