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schedule c cost of goods sold

Forum|Forum|2 years ago
March 30, 2024
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Schedule C, line 42 instructions say "subtract line 41 from line 40. Enter the result here...." There is no additional "if the result is negative, enter 0." I can't find any such instruction at irs.gov either. Yet on my return, line 41 is greater than line 40 and Turbotax is entering 0. (a) Is this a bug? (b) If not, can you point me to an IRS instruction that says a 0 should be entered here?

Thanks

Best answer by Mike9241

There is no bug. You missed entering a number on one or more of the following lines

35 through 39.

the total of these is line 40 line 41 is subtracted from line 40.

the ending inventory can't exceed the total of the costs on line 40

M

Mike9241Answer

There is no bug. You missed entering a number on one or more of the following lines

35 through 39.

the total of these is line 40 line 41 is subtracted from line 40.

the ending inventory can't exceed the total of the costs on line 40

G

gtnpizdAuthor

Ah thanks. I entered values but my misunderstanding was the definition of "inventory." I thought if (e.g.) I bought $10 of materials and used that material to make a $50 item that remained unsold at end of year, that I would have $50 in inventory. But for this purpose, I actually have $10 in inventory. Does that sound right?