I have a booth and retail clothing jewelry etc. they collect and report the sales tax. Can I file taxes and use the cost of my inventory as expenses?

[prissypants2011-]

This is just a sole proprietorship.

[DianeW777]

Yes.  Any item you purchase for resale for your business is an expense for the business.  This can be entered as supplies or product.  Inventory is not a required tracking if your gross receipts for your sole proprietor business is less than $27M for 2022.

Under the Tax Cuts and Jobs Act (TCJA) Effective 2018-2025:

The $25 million gross receipts amount is adjusted annually for inflation. The inflation adjusted gross receipts amount for 2019 through 2021 is $26 million. The inflation adjusted gross receipts amount for 2022 is $27 million.

[prissypants2011-]

Ok. So can I also claim the booth rental?  They also received 14% of my gross sales. Do I just enter what I actually received from them for my payout each month as income for the business?

[CatinaT1]

Yes, your booth rental is an expense.

You will enter the total income you received. The booth rent and the 14% you payout are expenses.

Below are a couple of links that might be useful to you. 

About Schedule C 

Self Employed Individuals Tax Center