PatriciaV
Expert Alumni

Business & farm

As a cash basis taxpayer with a business that isn't required to report inventory, you can "sell" all your remaining inventory in one tax year. From that point on, you would have no inventory to track or report. Simply expense your purchases as merchandise or supplies.

 

This would not be a change in accounting method requiring Form 3115, since you are not changing how you value your inventory. You basically have no more inventory.

 

@ritanbobk 

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