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How do you handle your TAXES - Schedule C?

Offline luke

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How do you handle your TAXES - Schedule C?
« on: April 09, 2014, 03:42:53 PM »
Obviously, whoever buys and sells storage lockers for a living, is operating a retail business (Selling and buying merchandise)

The part I'm having trouble with is this..

Say I buy a storage unit for $1000

So my Beginning Inventory is $1000

I sell say $1500 dollars worth of that inventory (in which it might be say 75% of the locker) but that in no way means my ending inventory is $250.. as the remaining 25% might be either all the pristine items that I haven't found a value for yet, or perhaps all the garage sale stuff that might add up to $50 bucks.

How do you determine what your ending inventory is for that year, or do you just estimate that it's $250 remaining..  It's hard because, you're not buying specific items with a specific cost and estimate the cost of good sold to be $750.

If you get an audit, what will the IRS say. This is the only part that's guesswork, because the value is subjective.


Offline alloro

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Re: How do you handle your TAXES - Schedule C?
« Reply #1 on: April 09, 2014, 05:24:20 PM »
As far as I'm concerned there is no left over inventory, it was all sold. Anything that might be left and then sells goes on next year's taxes as a sale.


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