Question

If I purchased something without the intent to resell it, do I still include it in "Purchases Withdrawn for Personal Use"?

Forum|Forum|5 years ago
February 6, 2021
1 reply
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For example, if I bought and sold Nike shoes, but bought a pair with the intent of using them myself, do I include the personal pair on the tax return since I never intended on reselling it?

TurboTax Self Employed Online

A

AnnetteB6

The answer would depend on whether you can account for the personal purchase separately or if it were included as a part of the purchases made for your business.

If the pair that you intended to use yourself was included with purchases made for your business, then you would consider the cost of the pair purchased for personal use as 'purchases withdrawn for personal use'.

If the pair for personal use was purchased on its own and not as part of a lot of goods purchased for your business, then you would not include it as part of your return.

As an example, if you purchased 100 pairs of shoes at one time (including the pair you intended to use), then you would enter that total cost of purchases and then account for your personal pair by entering it in the 'purchases withdrawn for personal use'. This adjusts your total cost for the 99 pairs available to sell.

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