Counting begining and ending inventory.

[jon90]

This post and the replies have answered many of the questions I have been looking for.

I did not want to track inventory and I only wanted to write off what sold in the year that it sold and only what sold. 

What would be a good Description to call this field in the supplies expense field? Just new to this. 

[Anonymous_]

You could just use the word "merchandise" since the definition of that word is simply goods that are bought and sold in the ordinary course of business.

[jon90]

Thank you for your reply! I will do that.

[jon90]

...

[jon90]

So would this show up under line 22 Supplies or line 38 materials and supplies on my schedule C. My schedule C has it on Line 22. Jus double checking before I submit. 

[PatriciaV]

Yes, your merchandise may be reported as materials or supplies, or you can enter this under Miscellaneous Expenses using your custom description of "merchandise." 

Note: If you enter a general business expense in the wrong category, it will not affect your taxes. Just be sure you don't enter the same expense twice.

[stella4am]

@Anonymous_ If I don't maintain an inventory, do you recommend putting inventory sold in "Materials and Supplies" on Line 38 in the COGS section, and putting 0 for beginning and ending inventory? Or should "Materials and Supplies" be listed under Expenses? Does it matter?