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Dissolved sole prop. donated inventory. Do I enter 0 for end of year inventory? Do I then enter starting inventory in withdrawn for personal use and cost of purchases?

Forum|Forum|7 years ago
June 3, 2019
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Or should the starting inventory amount be entered only in withdrawn for personal use? Also would the total starting inventory amount be used in donations to charity?

TurboTax Self Employed Online

Best answer by Anita01

You use whatever starting inventory you had then include any amount donated in the amount converted to personal use. A sole proprietorship cannot take any credit or deduction for charity donations, so the inventory became yours and you chose to donate it. Yes, your ending inventory should be zero if you are closing the business.

The cost or market value, whichever is lowest, can be entered as a charitable contribution under Itemized Deductions for your Schedule A if you have the require supporting receipts from the charity.

A

Anita01Answer

Employee

You use whatever starting inventory you had then include any amount donated in the amount converted to personal use. A sole proprietorship cannot take any credit or deduction for charity donations, so the inventory became yours and you chose to donate it. Yes, your ending inventory should be zero if you are closing the business.

The cost or market value, whichever is lowest, can be entered as a charitable contribution under Itemized Deductions for your Schedule A if you have the require supporting receipts from the charity.