I filed form 3115 after filing my 2023 taxes to change my ebay reselling business from accrual to cash method of accounting for tax year 2024. I'm wondering how that changes this formula for 2024:
Beginning inventory 2024 + net purchases 2024 – COGS 2024 = ending inventory 2024
net purchases is an easy one to calculate, just add up all my purchases for 2024. Ending years inventory is now $0.00.. and normally beginning years inventory would be $0.00 ( if I had used cash method of accounting from the get go ) but this field auto populated in turbo tax and shows that beginning years inventory for 2024 is $6K...
Do I overwrite this field in turbo tax this year and change it to $0.00, or do I leave it as $6K just this one time ( and then for future files use $0.00 for beginning and ending years inventory ) ?? My instincts tell me to leave it as $6k because that value was used on last years' taxes.
If you know of other things I must do differently for this tax year because I filed form 3115 to change from accrual to cash, I would REALLY appreciate your help!!
