How to account for goods (inventory) that was purc...

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
EnglishEN

Pick a language

Français English
cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
New Member

How to account for goods (inventory) that was purchased, but never actually taken possession of, due to the deal falling through, but I was still stuck with the expense?

 
3 Replies
Highlighted
Moderator

How to account for goods (inventory) that was purchased, but never actually taken possession of, due to the deal falling through, but I was still stuck with the expense?

This would be reported under the Losses Profile which can be found under the Deductions tab  - Losses Profile.

Highlighted
New Member

How to account for goods (inventory) that was purchased, but never actually taken possession of, due to the deal falling through, but I was still stuck with the expense?

Thanks. And do I input 'zero' for the line that asks "What was the value of your closing inventory?". I'm worried that declaring something as having value at opening inventory, and then being a complete zero at closing would raise red flags for the CRA...
Highlighted
Moderator

How to account for goods (inventory) that was purchased, but never actually taken possession of, due to the deal falling through, but I was still stuck with the expense?

It's a loss so yes you input zero.

Please review link below to avoid any unnecessary audit alerts:

How can I protect myself from a CRA audit?
https://turbotax.community.intuit.ca/replies/3394573
v