Dear Turbotax Community,
I set up an online business that is essentially a glorified garage sale of sorts. We are a bit stumped as to how to enter our inventory correctly and ask for the community's help. We had purchased hundreds of new and mostly used computer parts for our in person business and these parts needed to be sold and liquidated as they were older parts and not needed, but still had value. Essentially we sold everything (700+ ebay sales transaction) at break even, or in some cases below just to recoup our money. We haven't used turbotax before and when we are trying to complete our taxes using the free version and entering our business information, we are having trouble with getting the net vs gross income part correct.
Exact inputs we are entering for business income in turbotax program:
Accural method
We play an active role in the business
No I don't have 1099 or 1099-MISC
"Income or Sales": $24,xxx
My business carries an inventory
Cost Method
Beginning inventory: 24,xxx
End inventory: 0.00
Cost of purchases: 23,5xx
Yes, qualified business income
What it is showing on screen after these inputs:
Gross Income: -23,500
Net Income: -23,500
What we should be seeing based on the circumstances: gross revenue of about 24k and a low to negative net income.
What we are seeing: Negative gross AND net income, which is obviously incorrect.
Any help is greatly appreciated!
