Treatment of Obsolete Inventory

Forum|Forum|3 years ago
April 12, 2023
1 reply
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Hi, I am a new Turbotax user. We have a company that sells perishable items, and some product has expired prior to being able to sell the inventory. How is this loss entered in TurboxTax? Alternately, how can or should a Donation from the Schedule C entity (LLC) be entered?

ThomasM125

The perishable items will be deducted through the entry of your ending inventory amount. Your cost of goods sold is determined by adding your beginning inventory balance to the cost of items purchased and then subtracting the value of your ending inventory. Since the cost of your perishables is included in purchases but not ending inventory, the cost of them ends up in cost of goods sold.

Charitable contributions are not entered as a business deduction, they can only be entered as an itemized deduction in the Deductions and Credits section of TurboTax, and then Charitable Donations.

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