I bought a $10 item in 2021, and claimed it on my schedule c. In 2022, I sold the item, and in Federal > wages & income > business > inventory, it shows as $10 of Inventory expenses. I did not claim that I bought the item in 2022, I am listing it as starting inventoy sold in 2022. Wow, thats great I get to expense that item twice. Which U.S. law allows me to double expense my inventory?
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To clarify, you listed the $10 inventory on your 2021 and it was carried over to your 2022 inventory? Are you listing the sale of the inventory as cost of goods sold?
"Are you listing the sale of the inventory as cost of goods sold?"
I'm sorry, I'm not an accountant, could you please help me understand what that means.
2021 beginning inventory of $10 minus $10 2021 cost of goods sold expense equals 2021 ending inventory of $0.
2021 ending inventory of $0 becomes 2022 beginning inventory of $0.
@BrittanyS is asking whether the 2021 $10 sale was recorded as cost of goods sold expense or as something else.
These categories are reported at the screen Do you have inventory to report within the self-employment activity
and at the screen Let's get the cost of good sold within the self-employment activity.
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