Good day,
I have a question regarding the “Does your business have inventory or cost of goods sold?” Last year, I went with this method, but I want to make sure I am doing it correctly. For the 2022 tax year, I sold photography calendars. Under Cost of Goods Sold Line 36 I stated I spent $1000 to purchase the calendars and had an inventory cost of $40 line 39 at the end of the year, which I did not sell until 2023. Now I am doing taxes for the 2023 tax year, I spent another $1400 on calendars $1100 my cost, of which I sold in 2023, and $300 my cost of calendars in 2024.
So when doing my 2023 Taxes: Should I put $40 Line 35, $1100 Line 36, and $300 Line 41?
Second question – I purchased shipping packages/cardboard to mail the calendars – should I put that on line 38 under Costs of Good Sold or under Other Expenses?
Thank you,
Zach Vogel
I should mention that this is for my SMLLC, and the $1400 is my total cost, not what I sell them for; I sell each calendar for 15-20 dollars.