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cash basis and inventory/cost of goods sold

Level 4

I have a client who sells thermometers and other health products on ebay. This is a small taxpayer- Cash basis. Taxpayer wants to stock up on products to be sold and get the deduction. As a cash basis, small taxpayer, does TP still need to track inventory- ie only deducts Cost of Goods literally sold during the year, not just purchased? 

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1 Comment 1
Level 15

Please don't post the same question twice:


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