Discussion:Book COGS vs Tax COGS
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Discussion Forum Index --> Basic Tax Questions --> Book COGS vs Tax COGS
Discussion Forum Index --> Tax Questions --> Book COGS vs Tax COGS
| 5 August 2009 | |
| Hi....working on a return for a client that "tracks" inventory in QB --- I don't think they are utiizing that feature correctly in QB but that's besides the point. When I prepare the COGS section on the 1120 using the normal formula, I am getting a much different amount for COGS than the COGS amount in QuickBooks. Is this difference disclosed as an M-1 adjustment? If not, where do you normally show that difference? | |
| 5 August 2009 | |
| you have to determine which number is incorrect in the formula: beginning inventory, ending inventory, or purchases. Compare each in QB with what you have on the tax return. Somewhere is an error. | |
| August 5, 2009 | |
| 'Purchases' may have all ready been adjusted for the change between beginning and ending inventory. | |
| 5 August 2009 | |
| Yes indeed -- there were many inventory adjustments that were not booked appropriately --- I'm good now. thx. | |
Actionbsns (talk|edits) said: | 6 August 2009 |
| Fred, we're always so glad to have you help out. | |
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