My husband has a small home business manufacturing and selling skin care products. As I was getting ready to do that part of our tax return I realized I didn't have an inventory amount for the end of 2021. The inventory for 2020 was $320, which seemed low to me. Turns out he didn't include all the inventory in his count at the end of 2020 (labels, product containers, materials for the manufacture of the products). I had him do a full inventory for the end of 2021 and we calculated $884. After entering that total for the end of 2021 and then entering the cost of goods, the total for 2021 is $0. If my inventory at the end of current tax year is significantly more than the end of the previous year, will that cause my total to go to $0? I'm using the cost method to value inventory.
