cash basis inventory

[jgcpa]

 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? 

[abctax55 · Accepted solution]

1)  No need to post twice

2) Pick which software you are *actually* using, and stick with that thread.

Thanks.