Cost of Purchases - Apparently, TTX renamed this from"Cost of Goods Sold". Enter in this box what *you* paid for inventory you actually sold
This is not right....TTX didn't rename the cost of goods sold to cost of purchases and you don't enter what you paid for inventory you actually sold in this box......you enter what you paid for inventory purchases. Cost of purchases is right there on SCH C where it's always been and it is what was paid for inventory purchased during the year, not what was paid for the inventory that was actually sold......inventory that was actually sold is the COGS and COGS is calculated by adding the cost of purchases made during the year to the beginning inventory and then subtracting the ending inventory.
