Non-depreciable obsolete inventory

[NancyNH]

I'm using TurboTax Business 2024 to prepare the final return for my small c-corp. We have a non-depreciable asset of obsolete inventory to scrap for zero value. TT generates a form 4797 but the inventory is non-depreciable. How do I deal with this? Can I make a change to prevent the 4797? I can't answer the questions properly because the 4797 deals with depreciation. Thanks.

[ThomasM125]

I believe you have reported the sale of inventory as if it was an asset, so you need to reverse that entry. You will find it in the Assets/Depreciation section of your return.

Inventory is cost of goods sold property that is deducted as such against sales income. It is listed on Form 1125-A on your corporate return. Line one of that form lists the beginning inventory and line 7 lists the ending inventory. To deduct the ending inventory, you would simply leave it off the Form 1125-A on line 7 and that would result in it being added to cost of goods sold and deducted as such.