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Does the value of my inventory at the end of the year included shipping cost to receive that inventory?
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May 31, 2019
9:17 PM
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Business & farm
Yes, it is the total cost you paid for the inventory. Remember, if you include the shipping cost in inventory, you will not separately deduct it as an ordinary business expense. Also, you will need to allocate the shipping cost to inventory as it is sold throughout the year to accurately account for the remaining inventory at the end of next year.
May 31, 2019
9:17 PM
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Business & farm
If I don't include the shipping cost in inventory, and do deduct it as an ordinary business expense I wouldn't have to account for it in the remaining inventory at the end of the year correct? Would that be easier?
May 31, 2019
9:17 PM
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Business & farm
That wouldn't be proper. The cost of inventory includes the cost of shipping to you. Thus it should be allocated to the purchased items and deducted as the items are sold.
**Disclaimer: Effort has been made to offer correct information; but due to the discussion forum limitations, the poster disclaims any legal responsibility for the accuracy of the poster's response**
June 10, 2019
3:59 PM