Question

Writing down inventory

Forum|Forum|4 years ago
April 18, 2022
1 reply
0 views

I had inventory that cost $1750 at the end of 2020. I decided to close the business and filed paperwork with the state in 2021. The inventory is useless - best case, I will give it away. Can I take all $1750 as a loss?

Not A Product Question

D

DianeW777

it depends. You can use an amount as an expense after you withdraw any amounts for personal use. Any items you give away would be withdrawn for personal use. In other words, you must track what you do with the inventory until you completely dispose of it, either as a sale or junked, or given away for personal use. Any amount given away is not a business expense.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

T

taxTimeAlready_Author

Hi DianeW777,

My apologies if I am being dense.

1. You say I can take an expense for personal use

2. But then, anything given away is personal use

2. Then, in the last sentence, you say that anything given away is not business expense.

the first and last sentence are the opposite of each other. What am I missing?

Thanks.

V

Vanessa A

The response from @DianeW777 says "You can use an amount as an expense after you withdraw any amounts for personal use." This means you can NOT expense anything you use for yourself or give away. Whatever you have leftover after you take out what you are using for yourself would be a business expense.

The first and last sentences are saying the same thing, just different wording.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"