topic Cost of items bought for resale - Schedule F in Business & farm

Cost of items bought for resale - Schedule F

mark6 — Sat, 01 Jun 2019 02:25:51 GMT

When do deduct the cost of livestock purchased for resale? In the year purchased or the year sold?

PeterM — Sat, 01 Jun 2019 02:25:51 GMT

If you use the cash method of accounting, you ordinarily deduct the cost of livestock and other items purchased for resale only in the year of sale.

Please see the following link for further information IRS Farm Business Expenses (click here)

TaxGuyBill — Sat, 01 Jun 2019 02:25:53 GMT

So if you report your "inventory", the program will give you the deduction when it is sold.