Can someone explain what it wants when entering the value of opening inventory value, total purchase during the year, and closing inventory value? Does it want the value of inventory at market value or what I bought it for from manufacturer? What does total purchase mean- the amount customers purchased or I purchased from manufacturer?
As per CRA, you can enter your opening inventory amount at line 8300 and your closing inventory amount at line 8500 of your T2125. These amounts must include raw materials, goods in process and finished goods. The way you value your inventory is important in determining your income.
For income tax purposes, choose one of the following two methods:
For further information you can refer to the Self-employed Business page on the CRA website, Line 8300 – Opening inventory and Line 8500 – Closing inventory.
Thank you for choosing TurboTax.