RobertB4444
Expert Alumni

Business & farm

Correct.  But once you have made that selection on your tax return you are stuck with the choice.  So make sure that you have thought this through.

 

Also, while you can deduct your full inventory when purchased using the cash method you will still have to enter your beginning and ending inventories accounted for using the cash method.  So you get to deduct the total cost of the inventory minus what you haven't sold yet.

 

@ron2024 

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