Discussion:Book COGS vs Tax COGS

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Revision as of 22:12, 5 August 2009
Belle (Talk | contribs)
('Purchases' may)
← Previous diff		 Revision as of 22:15, 5 August 2009
Chase (Talk | contribs)
(Yes indeed -- th)
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{{ForumReplyPost|UserID=Belle|Date=August 5, 2009|Text='Purchases' may have all ready been adjusted for the change between beginning and ending inventory.}} {{ForumReplyPost|UserID=Belle|Date=August 5, 2009|Text='Purchases' may have all ready been adjusted for the change between beginning and ending inventory.}}
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 +{{ForumReplyPost|UserID=Chase|Date=5 August 2009|Text=Yes indeed -- there were many inventory adjustments that were not booked appropriately --- I'm good now. thx.}}

Revision as of 22:15, 5 August 2009

Discussion Forum Index --> Basic Tax Questions --> Book COGS vs Tax COGS
Discussion Forum Index --> Tax Questions --> Book COGS vs Tax COGS

Chase (talk|edits) said:

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?

Kevinh5 (talk|edits) said:

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.

Belle (talk|edits) said:

August 5, 2009
'Purchases' may have all ready been adjusted for the change between beginning and ending inventory.

Chase (talk|edits) said:

5 August 2009
Yes indeed -- there were many inventory adjustments that were not booked appropriately --- I'm good now. thx.
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