I ended my Mary Kay business and need help with inventory.

[Helpinghand11]

I ended my Mary Kay business do I need to list inventory? I sold back everything I could and got rid of the rest of my inventory so I have nothing now. Also do I have to report the 90% buy back on the products i purchased somewhere?

[LeticiaF1 · Accepted solution]

Yes, when you get to the business section, continue your entries as if you were entering your business. TurboTax will ask you if you stopped your business during the year; answer yes to this question. ‌The program will ask for more information on how you closed the business.  

Continue through the interview process for the business. The program will ask about income and expenses, and about any assets that the business had, and about your inventory.  For more information visit the following links for both IRS and TurboTax information on closing a business:

Steps to take to close your business

Closing a Business

[Helpinghand11]

So I did all that but when it comes to inventory I’m confused. It asks if I have inventory to report. Do I say yes or no? As of 12/1/2024 I had 0 inventory. 

[MarilynG1]

If the business had any inventory beginning in 2024, your closing inventory balance must be zero. If not, then you must show the disposition of that inventory. 

If you did not sell that inventory, then simply select the option to indicate it was removed for personal use. That will make the ending inventory balance zero.

@Helpinghand11 

[Helpinghand11]

I can’t find that section to add that in. As soon as I put I have no inventory it doesn’t allow me to enter anything in. 

[JamesG1]

In TurboTax Online, follow these steps:

• Down the left side of the screen, click Federal.
• Down the left side of the screen, click Wages & Income.
• Click the down arrow to the right of Self-Employment.
• Click to the right of Self-employment income and expenses.
• If you have not established a self-employment activity, the activity should be created.
• After the self-employment activity has been established, click Edit or click the pencil to the right of the activity at the screen Your 2024 self-employed work summary.
• Click the pencil to the right of Inventory.
• If you do not have an Inventory, select Add expenses for this work.  Then enter 'inventory' in the Search for expense categories.
• At the screen Do you have inventory?, select Yes.  Continue.
• At the screen Do you use the cost method?, select Yes.  Continue.
• At the screen Let's get the value of inventory, enter beginning and ending inventory.  Continue.
• Purchases Withdrawn for Personal Use may be found at the screen Let's get the cost of goods for your work.