Incorrect Inventory at EOY

Forum|Forum|2 years ago
August 30, 2023
2 replies
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Help! Last year was my first year of selling online. When listing my inventory on 2021 taxes I think I calculated as if it was physically on hand, but was not. I keep very little inventory available as I want most to be online. I'm trying to finish my extension! for 2022 taxes, but BOY inventory is not correct. How can I rectify to finish 2022 taxes? Thank you.

Laura_CPA

Hi ConnieK,

Happy to answer your question! Consider amending your 2021 taxes to get your 2022 correct.

Hope this helps,

Laura

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ConnieKAuthor

Employee

2021 boy inventory $O, Purchases$ 2213, other lines are $0, line 40 =2213, 41= 2463, 42= $0

So... EOY= $2463 (I actually only had about 400$ inventory at eoy)

income sales =$1987, COG $0?? gross =1987 +84 =$2071

I'm confused as where these numbers came from! LOL...but, yes, I did them! Any inside is helpful!

Anonymous_

Employee

@ConnieK wrote:
...COG $0??...

Correct, that would be the result of TurboTax picking up your 2021 EOY inventory ($2213 less $2463 = a negative number which TurboTax would interpret as $0 and then carry forward to 2022 as your BOY inventory).

Mike9241

if you are accounting for inventory, it does not have to be on hand to be included. if you own it and say it's stored in a warehouse somewhere, the cost is includable.

you'll have to give a further explanation of what you included in 2021 1040 EOY inventory that you believe was improper.

if BOY for 2022 is incorrect EOY for 2021 was incorrect because that's where Turbotax gets the BOY number.