Unsold or obsolete inventory
Varies
Can You Write Off Unsold or Obsolete Inventory?
Short answer: Unsold inventory is only written down once you dispose of it or offer it for sale below cost.
Inventory isn't deducted when bought; it becomes cost of goods sold when sold, or is written down when it's destroyed, expired, or unsellable.
Records to keep: Keep receipts or invoices, proof of payment, and a note of the business purpose for each expense.
BW-B23-00664
medium risk
Unsold or obsolete inventory
Varies
General Business
Supplies & Inventory
Tax Write-Off Rules
Unsold inventory is only written down once you dispose of it or offer it for sale below cost.
BizWriteOffs provides educational information only and is not tax, legal, or accounting advice. Deductibility depends on your specific facts and records. Consult a qualified tax professional.
Business justification
Unsold inventory is only written down once you dispose of it or offer it for sale below cost. Inventory isn't deducted when bought; it becomes cost of goods sold when sold, or is written down when it's destroyed, expired, or unsellable.
Category
- Tax Write-Off Rules
tax rule
search demand 2026 b23
losses records
business losses