Discussion:Ending inventory estimate
From TaxAlmanac, A Free Online Resource for Tax Professionals
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.
From TaxAlmanac
Discussion Forum Index --> Basic Tax Questions --> Ending inventory estimate
Discussion Forum Index --> Tax Questions --> Ending inventory estimate
| 28 July 2009 | |
| Have a small bakery that opened in 2007. I am doing the 2008 return. No physical inventory was taken at year end. How do you suggest I handle on Schedule A Cost of Goods at the top of page 2 of the Form 1120S? Can I just use purchases as cost of goods sold in this case, and just use the same ending inventory amount as the prior year return? | |
| 28 July 2009 | |
| Sound reasonable to me. I might ask owner if there was an significant change in inventory, in his opinion, from December 31, 2007. | |
| July 28, 2009 | |
| Yeah, it's a bakery. How much will the flour and sugar and shortening levels fluctuate? | |
RoyDaleOne (talk|edits) said: | 29 July 2009 |
| What, if anything, are you doing about the Section 263A costs? | |
| 29 July 2009 | |
| Roy... thanks (really) for opening up a whole new can of worms. Looks like some research is in order. | |
| 29 July 2009 | |
| Doesn't Section 263A only apply to businesses with gross revenues in the millions? | |
RoyDaleOne (talk|edits) said: | 30 July 2009 |
| So sorry FLAcct that is incorrect. | |
To join in on this discussion, you must first
log in.
