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June 1, 2019
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How do I account for inventory adjustments (inventory damaged and/or lost in shipping), obsolete inventory (donated), and product samples that will never be sold

  • June 1, 2019
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Best answer by kll

You will simply reduce your ending inventory by the amount you paid for the inventory you are disposing of, is obsolete, etc.  There is no further deduction allowed for donating inventory since cost value will be reported as the reduction in inventory on your Schedule C.

1 reply

kllAnswer
June 1, 2019

You will simply reduce your ending inventory by the amount you paid for the inventory you are disposing of, is obsolete, etc.  There is no further deduction allowed for donating inventory since cost value will be reported as the reduction in inventory on your Schedule C.