If you are purchasing them to sell, they are reported as costs of goods sold.
- When you are entering expenses for your business choose the drop-down for "Less common expenses" and select "Inventory"
- Enter the cost of all your shirts/jeans as purchases
- Enter the cost of the shirts/jeans that were unsold at the end of the year as ending inventory.
You may not deduct the cost of unsold inventory. You deduct that in the year you sell it.
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