Destroyed CD inventory deduction

[Face_in_the_crowd]

Can I get a tax deduction for 10,000+ CD's (excess / antiquated inventory for my business) that I tossed in the trash. These CD's were manufactured about 18 to 19 years ago. People want digital albums nowadays. Nobody buys CD's anymore.

[NancyG · Accepted solution]

Yes, if that is the cost/basis of the CDs and they have been included in business inventory since purchase.

[Face_in_the_crowd]

So you're saying that I must have reported the inventory every year in my tax returns? That would be a deal breaker.

[NancyG]

If you don't show inventory, it means you took the expense for the CD each year as you bought them.  You already received the tax deduction.

[jason15]

So where exactly in my business tax return do I account for destroyed CD inventory? I'm using Turbotax Home & Business