Turbotax treating remaining inventory as income.

Forum|Forum|3 years ago
January 31, 2023
1 reply
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I have a small wholesale car business but did not participate in it this past year due to health problems. My beginning and end of year inventory stayed the same yet when I enter my end of year inventory (the same as beginning) it deducts from my federal refund making it seem it is income. What am I missing or doing wrong?

Should I just not file a schedule C for last year as I had no income?

Best answer by Anonymous_

If you had neither income nor expenses (including assets that you are depreciating), then there is no need to file a Schedule C.

However, if your beginning inventory is exactly the same as your ending inventory and you made no sales or purchases, your cost of goods sold should be $0.

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Anonymous_Answer

Employee

If you had neither income nor expenses (including assets that you are depreciating), then there is no need to file a Schedule C.

However, if your beginning inventory is exactly the same as your ending inventory and you made no sales or purchases, your cost of goods sold should be $0.

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Thomas WoodrowAuthor

Thank you for your reply Tagteam,

Yes, Cost of goods sold is zero. I just do not understand why soon as I entered my end of year inventory turbo tax deducted from my federal refund balance as if that inventory amount was profit.

I'll just skip filing the Schedule C this year. I thought I would have to since I still have inventory.