Closed bussiness this year what do i put for ending inventory and donated items to salvation army

posted

Yes, when you close your business, your ending inventory is zero.

If you had a "Beginning of Year Inventory" that was more than zero, you then indicate that all of that inventory was "removed for personal use". That reduces your inventory to zero.

The items you donated to charity are reported as Charitable Contributions under Deductions & Credits (this is a personal deduction, not for your business). The value of your donation is either the fair market value or your cost.

According to IRS Pub 334 Donation of inventory. "If you contribute inventory (property that you sell in the course of your business), the amount you can claim as a contribution deduction is the smaller of its fair market value on the day you contributed it or its basis."

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