topic How to enter cost of goods for ecommerce business in Business & farm

How to enter cost of goods for ecommerce business

Dreamer — Wed, 15 Jul 2020 00:20:04 GMT

Hello,

I have a schedule c for eCommerce business. So under inventory / cost of goods > it asks for beginning and ending of value. Next screen it asks for costs of goods.

Beginning value of inventory: $0. I started my business early last year. I did not have anything. I put $0

Ending value of inventory: $4500. As of Dec 31 2019, I had unsold goods. So I valued them at a retail price(how much I would sell those for)

Costs of goods: I am not sure what it is asking here. Is it asking to enter how much was total cost of the goods that left as of Dec 31 2019 or is it asking me cost for all the goods that I purchased in year 2019?

Please advise!

Re: How to enter cost of goods for ecommerce business

Anonymous_ — Wed, 15 Jul 2020 01:44:22 GMT

Cost of Goods Sold is calculated by the program. You need to enter your beginning inventory (if any), purchases during the tax year, and your ending inventory.

Beginning inventory PLUS Purchases LESS Ending inventory EQUALS Cost of Goods Sold.

Re: How to enter cost of goods for ecommerce business

Dreamer — Wed, 15 Jul 2020 15:29:34 GMT

Cost of goods field is blank requiring a user input.

Re: How to enter cost of goods for ecommerce business

Anonymous_ — Wed, 15 Jul 2020 15:47:13 GMT

@Dreamer I have been unable to reproduce the result you stated in your post.

Note that if you only enter $0 for beginning inventory and $4500 for ending inventory, your COGS will be ZERO. You most likely need to enter the cost of items you sold during the year as Purchases.

Regardless, if you are using the proper version of TurboTax (Self-Employed if online or Home & Business if desktop) and also indicated that you have an inventory to report, then the COGS should be calculated for you.