I don't know if this would be a problem, raise flags, or anything. But if you qualify to just expense inventory and then you close the business without selling all of it, I'm not sure how that works with the IRS.
For example, you purchaes $10K of inventory in 2020 and only sell $1K of that inventory. Then you close the business at the end of 2020 with $9K of your inventory left over that you expensed. If that expensed inventory results in a loss for your business for the tax year, then what's the deal on that? you just get to keep it for yourself tax free? I have no idea how that works, or if the IRS would have reason to notice it.
