juvallerner
Returning Member

Cash Basis Inventory for Small Business Exception on Schedule C

I'm trying to confirm what the best way to record inventory purchases during the year if I plan to use the small business exception that allows cash basis and no tracking of inventory.

 

Should I report Schedule C Sole Proprietor / Small Business Cash Basis Inventory on line 22?

 

It looks like Part III is not relevant if cash basis is used.