Question

My BOY inventory does not match my EOY inventory from last year

Forum|Forum|2 years ago
February 4, 2024
1 reply
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I have a small business that is registered as an LLC. I make handmade wreaths. I started my business in 2021.
For 2022, I did very little with my business aside from paying necessary fees. Looking back on this tax filing, I believe that I was not prompted by TurboTax correctly and I did not put any information in for the COGS section.
For 2023 I did a very small amount of business (had expenses and made sales).

My question is, while I am trying to file my 2023 return, I realized that my BOY inventory for 2023 won't match my EOY inventory for 2022 (since it was left blank). For my 2023 return, should I put 0 for my BOY inventory to match my 2022 return? Or should I have my BOY inventory match my 2021 EOY return that was my first year of business? My inventory at the beginning of 2023 was the same as the end of 2021 (nothing changed in 2022 since I did not make any purchases on goods nor did I sell any products).

PatriciaV

Enter the correct beginning and ending inventory amounts. Since you had no purchases or sales last year, the 2021 ending balance would have been carried over as the beginning balance for 2023.

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