No sales of the book occurred in 2018 (have sales and royalties in 2019).
You'll need to sign in or create an account to connect with an expert.
You have inventory. You need to enter in the Cost of Goods Sold section of Schedule C the expense that went into the books (you can list them on 36a as Purchases, assuming you bought the completed books).
Then, for inventory, you will list the value of the inventory you had on hand at the end of the year (100 books). This should be the same value as the Purchases.
This will result in a zero for Cost of Good Sold for 2018. Therefore, you will have no loss reported due to buying the books (you could easily have other expenses, though, that could cause a loss in 2018).
What will happen is that you will recognize the expense (buying the books) in the year that you sell the books (hopefully 2019). This will happen when your inventory shrinks so that you have expenses to apply to your income.
You have inventory. You need to enter in the Cost of Goods Sold section of Schedule C the expense that went into the books (you can list them on 36a as Purchases, assuming you bought the completed books).
Then, for inventory, you will list the value of the inventory you had on hand at the end of the year (100 books). This should be the same value as the Purchases.
This will result in a zero for Cost of Good Sold for 2018. Therefore, you will have no loss reported due to buying the books (you could easily have other expenses, though, that could cause a loss in 2018).
What will happen is that you will recognize the expense (buying the books) in the year that you sell the books (hopefully 2019). This will happen when your inventory shrinks so that you have expenses to apply to your income.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
Scap1
New Member
sheilaamerica
New Member
BDavis52
New Member
TheTimNash
Level 1
sonofdod
Level 2
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.