Sole Proprietor > Partnership: how handle inventory?
#1
01-10-22, 04:53 PM
Sole Proprietor > Partnership: how handle inventory?
I prepped my daughter's 1040/Schedule C, Sole Proprietor return for the tax year 2021 via Turbotax. On 1/1/2022 she is continuing this business, but as a Partnership with her hubby.
The Sole Proprietorship has an end of year inventory which will then be assumed by the Partnership. For tax purposes, how should that be handled? That is to say, how do we show disposal of inventory on her 2021 Schedule C and receipt of that inventory on their 2022 Partnership return?
The Sole Proprietorship has an end of year inventory which will then be assumed by the Partnership. For tax purposes, how should that be handled? That is to say, how do we show disposal of inventory on her 2021 Schedule C and receipt of that inventory on their 2022 Partnership return?
