Thank you so much for your reply!
I'm sorry for dummy questions, but this is very new to me. I don't fully get how inventory works. If I have paid lets say $6,000 for t-shirts in 2019, and I have sold $200, I will have $5,800 inventory to begin 2020 with. Then If I sell $1000 in 2020, I will not pay income taxes on these, and my inventory will be $4,800 in the beginning of 2021. Am I getting this right?
I just don't want to sell all t-shirts for $500 and get a 1099 from Amazon on which I pay income tax while I actually paid $6,000 to earn the $500.
Thank you much
Sincerely
Ivan
