LLC Deduction

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My wife recently closed her small antique business (LLC) after 13 years and now has approximately $50K worth of left over inventory that is in storage. We have included our business financials with our family joint filings on our Federal Tax return. Can we include this $50K somehow as a deduction on our tax filing? Or how should we handle this excess inventory that we can no longer use?

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  • KFine3325
    KFine3325 FreeTaxUSA Agent
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    How you need to report the remaining inventory will vary depending on how it's disposed of at the close of the business.

    If the inventory is being held by your wife, she would report it as being converted to personal use when filling out the inventory information for her business.

    If the inventory is being sold at the close of the business, she would simply report the income received as part of her business income and then report the corresponding reduction in inventory value when filling out the inventory information for the business.

  • willcarr1
    willcarr1 Member Newcomer
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    Thank you for replying KFine3325! So this may end up costing us more for not selling it and now storing it as Personal Property? I was hoping I could write all of this off in some sort of business loss. We can't keep 20 lamps, 4 sofas, etc.

  • rachels
    rachels FreeTaxUSA Agent
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    I am sorry. Yes, it may end up costing you more since you did not sell the inventory before closing the business—you won't be able to claim a loss if you sell the items for less than you purchased them for.