If I have inventory that was damaged and thrown away, how do I show that on my taxes? Everything says that those inventory numbers have to be accounted for so if my end of year inventory is lower than usual because I cleared out damaged and very old items either thrown away or donated (small business and sole proprietor so technically I don't have to report inventory at all but I just learned that and have been reporting inventory / cost of goods for years) All I can see are casualty losses where it has to be caused by a natural disaster, fire, theft etc - what about just regular reasons like, it fell off the shelf and broke, or I've had it for 5 years and I'm not paying anymore listing fees to keep it in my online shop... I'm not keeping the items for personal use, I got rid of them.
