topic Inventory Cost Method or Lower Cost Method in Get your taxes done using TurboTax https://ttlc.intuit.com/community/taxes/discussion/inventory-cost-method-or-lower-cost-method/01/610288#M247372 Which method of reporting can you use if you drop shipped merchandise but also bought inventory items in bulk? I recorded the amount I paid for drop shipped items as well as the inventory purchased in bulk. Thu, 06 Jun 2019 06:09:18 GMT jason95491 2019-06-06T06:09:18Z Inventory Cost Method or Lower Cost Method https://ttlc.intuit.com/community/taxes/discussion/inventory-cost-method-or-lower-cost-method/01/610288#M247372 Which method of reporting can you use if you drop shipped merchandise but also bought inventory items in bulk? I recorded the amount I paid for drop shipped items as well as the inventory purchased in bulk. Thu, 06 Jun 2019 06:09:18 GMT https://ttlc.intuit.com/community/taxes/discussion/inventory-cost-method-or-lower-cost-method/01/610288#M247372 jason95491 2019-06-06T06:09:18Z If you recorded the actual amount you paid for both items... https://ttlc.intuit.com/community/taxes/discussion/if-you-recorded-the-actual-amount-you-paid-for-both-items/01/610297#M247376 If you recorded the actual amount you paid for both items that were drop shipped and items purchased in bulk, you used the cost method to record your inventory. Thu, 06 Jun 2019 06:09:19 GMT https://ttlc.intuit.com/community/taxes/discussion/if-you-recorded-the-actual-amount-you-paid-for-both-items/01/610297#M247376 Fern 2019-06-06T06:09:19Z I recorded the amount I paid for drop shipped items ex: i... https://ttlc.intuit.com/community/taxes/discussion/i-recorded-the-amount-i-paid-for-drop-shipped-items-ex-i/01/610303#M247379 I recorded the amount I paid for drop shipped items ex: if the item was $25.00 I charged the customer $50.00 = $25.00 profit. For drop shipped items I have recorded the actual amount per item (ex: $5.00 per item x 100 = $500.00 total.) Would this qualify for the cost method? Thu, 06 Jun 2019 06:09:21 GMT https://ttlc.intuit.com/community/taxes/discussion/i-recorded-the-amount-i-paid-for-drop-shipped-items-ex-i/01/610303#M247379 jason95491 2019-06-06T06:09:21Z Yes. https://ttlc.intuit.com/community/taxes/discussion/yes/01/610307#M247381 Yes. Thu, 06 Jun 2019 06:09:22 GMT https://ttlc.intuit.com/community/taxes/discussion/yes/01/610307#M247381 Fern 2019-06-06T06:09:22Z