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C
cgunton
March 24, 2025
Question

Last year I used inventory to report my craft business. Can I change from Inventory reporting to supply and income reporting this year?

  • March 24, 2025
  • 1 reply
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    1 reply

    DawnC
    DawnC
    Employee
    March 24, 2025

    Yes, you are not required to keep inventory unless your business gross receipts average $30 million a year over the last 3 years.  

     

    In TurboTax, you can report these costs in the inventory section as COGS or in the expenses section as supplies. Either way, you don't have to report inventory but you do need to carefully track what you paid for the products, materials, and supplies that go into your inventory.

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