I started an online selling business (sole proprietorship) for the 1st time towards the end of 2021 and the inventory was bought by another individual to help start it up. The person purchased the products overseas (the person that purchased it also lives overseas) and mailed them to me here in the US. I do have the invoice for the products.
With that, I am new to doing any sort of business taxes and for the Schedule C, I'm not sure how to correctly document Purchases (how much I spent for the inventory) for Cost of Goods Sold since I didn't buy the products myself.
I assumed I would put $0 (which would make my numbers and probably tax I owe much higher but lesson learned) but just wanted to be sure what's the correct way to complete that Cost of Good section for my Schedule C. Like I stated, I'm new to all this so please bear with me! Thank you so much..
**ETA: I wanted to clarify that I did not give the individual any money to purchase these goods, the person is a good friend that wanted to help get my business off the ground. I did not send them any money whatsoever for the purchase of goods. I will add this to my original post also.
