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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28084
Experience:  Taxes, Immigration, Labor Relations
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I owned a store from 2003 to 2008. During that time, I also

Customer Question

I owned a store from 2003 to 2008. During that time, I also had a full time job. My taxes were done professionally during those years. In September 2008, I started collecting my pension. However, I did not include all the store inventory valued between $10,000.00 to $12,000.00. I finally got help to complete it a few years after I closed my business.
In 2014, I have worked in various places and also worked as an independent contractor under 1099.
My questions are:
**Do I include the inventory in my 2008 tax.
**I have no yet done not done my 2014 taxes. I have about 4 w-2's including my pension and another 1099.
**For 2015, I also have w-2's, pension and another 1099.
Please advise.
Submitted: 7 months ago.
Category: Tax
Expert:  Lev replied 7 months ago.
you do need to account for inventory.Legally - yes - you need to amend your 2018 tax return and add missing information.If that will result in additional refund - however - you woudl not be able to receive such refund because of te statute of limitation.For 2018 tax return - the statute of limitation started on Apr 15, 2009 and run out three years later - on Apr 15, 2012.
Customer: replied 7 months ago.
Thanks for the response. I donated the items and would like to make some claims. What do you advice? .
Veralyn
Expert:  Lev replied 7 months ago.
You definitely may donate assets - but in order for that donation to be taxa deductible - that must be a donation to a qualified charitable organization.Another issue is related to the amount you may deduct.Specifically - see page 10 - Inventoryhttps://www.irs.gov/pub/irs-pdf/p526.pdf
Expert:  Lev replied 7 months ago.
If you contribute inventory (property you sell in the course of your business), the amount you can deduct is the smaller of its fair market value on the day you contributed it or its basis. The basis of contributed inventory is any cost incurred for the inventory in an earlier year that you would otherwise include in your opening inventory for the year of the contribution. You must remove the amount of your charitable contribution deduction from your opening inventory. It isn't part of the cost of goods sold.If the cost of donated inventory isn't included in your opening inventory, the inventory's basis is zero and you can't claim a charitable contribution deduction. Treat the inventory's cost as you would ordinarily treat it under your method of accounting. For example, include the purchase price of inventory bought and donated in the same year in the cost of goods sold for that year..I appreciate if you take a moment to rate the answer.Experts are ONLY credited when answers are rated positively.If you still have any doubts, need clarification - please be sure to ask.I am here to help you with all tax related issues.

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