topic Re: Inventory Reporting Question in Get your taxes done using TurboTax

Inventory Reporting Question

thereddoor — Sun, 11 Apr 2021 02:59:13 GMT

Our business had never met the threshold where you had to report inventory. 2020 however was different. My question is given that we had not reported in 2019 what should I fill in as our beginning number for 2020? Just don't want to create a discrepancy.

Re: Inventory Reporting Question

ColeenD3 — Sun, 11 Apr 2021 15:02:50 GMT

Your beginning inventory is the cost of goods you had on hand. It can't be zero because the purchases were made prior to 2020.

Re: Inventory Reporting Question

thereddoor — Sun, 11 Apr 2021 16:54:48 GMT

Thank you for the response and your time @ColeenD3 . One quick follow up if I could. Given that we did not report inventory in 2019 will that not create a discrepancy between our 2019 and 2020 returns? If so how do I solve this?

Turbo Tax seems to indicate that the our ending 2019 and beginning 2020 need to match.

Re: Inventory Reporting Question

ColeenD3 — Sun, 11 Apr 2021 17:07:12 GMT

It may or may not. If you get a letter, just explain the reasoning. Not everything can be done cleanly on the tax return.

Re: Inventory Reporting Question

thereddoor — Sun, 11 Apr 2021 17:06:29 GMT

@ColeenD3 thank you for your time and assistance.