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1040 Ez File

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1040 Ez File

1040 ez file Publication 584 - Additional Material Table of Contents This image is too large to be displayed in the current screen. 1040 ez file Please click the link to view the image. 1040 ez file Entrance Hall This image is too large to be displayed in the current screen. 1040 ez file Please click the link to view the image. 1040 ez file Living Room This image is too large to be displayed in the current screen. 1040 ez file Please click the link to view the image. 1040 ez file Dining Room This image is too large to be displayed in the current screen. 1040 ez file Please click the link to view the image. 1040 ez file Kitchen This image is too large to be displayed in the current screen. 1040 ez file Please click the link to view the image. 1040 ez file Den This image is too large to be displayed in the current screen. 1040 ez file Please click the link to view the image. 1040 ez file Bedrooms This image is too large to be displayed in the current screen. 1040 ez file Please click the link to view the image. 1040 ez file Bathrooms This image is too large to be displayed in the current screen. 1040 ez file Please click the link to view the image. 1040 ez file Recreation Room This image is too large to be displayed in the current screen. 1040 ez file Please click the link to view the image. 1040 ez file Laundry and Basement This image is too large to be displayed in the current screen. 1040 ez file Please click the link to view the image. 1040 ez file Garage This image is too large to be displayed in the current screen. 1040 ez file Please click the link to view the image. 1040 ez file Sporting Equipment This image is too large to be displayed in the current screen. 1040 ez file Please click the link to view the image. 1040 ez file Men's Clothing This image is too large to be displayed in the current screen. 1040 ez file Please click the link to view the image. 1040 ez file Women's Clothing This image is too large to be displayed in the current screen. 1040 ez file Please click the link to view the image. 1040 ez file Children's Clothing This image is too large to be displayed in the current screen. 1040 ez file Please click the link to view the image. 1040 ez file Jewelry This image is too large to be displayed in the current screen. 1040 ez file Please click the link to view the image. 1040 ez file Electrical Appliances This image is too large to be displayed in the current screen. 1040 ez file Please click the link to view the image. 1040 ez file Linens This image is too large to be displayed in the current screen. 1040 ez file Please click the link to view the image. 1040 ez file Miscellaneous This image is too large to be displayed in the current screen. 1040 ez file Please click the link to view the image. 1040 ez file Motor Vehicles Schedule 20. 1040 ez file Home (Excluding Contents) Note. 1040 ez file If you used the entire property as your home, fill out only column (a). 1040 ez file If you used part of the property as your home and part of it for business or to produce rental income, you must allocate the entries on lines 2-9 between the personal part (column (a)) and the business/rental part (column (b)). 1040 ez file 1. 1040 ez file Description of property (Show location and date acquired. 1040 ez file )     (a)  Personal Part (b)  Business/Rental Part 2. 1040 ez file Cost or other (adjusted) basis of property (from Worksheet A)     3. 1040 ez file Insurance or other reimbursement Note. 1040 ez file If line 2 is more than line 3, skip line 4. 1040 ez file If line 3 is more than line 2, you exclude gain, and the gain is more than you can exclude, see the instructions for line 3 in the Instructions for Form 4684 for the amount to enter. 1040 ez file     4. 1040 ez file Gain from casualty. 1040 ez file If line 3 is more than line 2, enter the difference here and skip lines 5 through 9. 1040 ez file But see Next below line 9. 1040 ez file     5. 1040 ez file Fair market value before casualty     6. 1040 ez file Fair market value after casualty     7. 1040 ez file Decrease in fair market value. 1040 ez file Subtract line 6 from line 5. 1040 ez file     8. 1040 ez file Enter the smaller of line 2 or line 7 Note for business/rental part. 1040 ez file If the property was totally destroyed by casualty, enter on line 8, column (b) the amount from line 2, column (b). 1040 ez file     9. 1040 ez file Subtract line 3 from line 8. 1040 ez file If zero or less, enter -0-. 1040 ez file     Next: Transfer the entries from line 1 and lines 2-9, column (a), above to the corresponding lines on Form 4684, Section A. 1040 ez file Transfer the entries from line 1 and lines 2-9, column (b), to the corresponding lines on Form 4684, Section B. 1040 ez file Worksheet A. 1040 ez file Cost or Other (Adjusted) Basis Caution. 1040 ez file See the Worksheet A Instructions before you use this worksheet. 1040 ez file         (a) Personal Part (b) Business/Rental Part 1. 1040 ez file   Enter the purchase price of the home damaged or destroyed. 1040 ez file (If you filed Form 2119 when you originally acquired that home to postpone gain on the sale of a previous home before May 7, 1997, enter the adjusted basis of the new home from that Form 2119. 1040 ez file ) 1. 1040 ez file     2. 1040 ez file   Seller paid points for home bought after 1990. 1040 ez file Do not include any seller-paid points you already subtracted to arrive at the amount entered on line 1 2. 1040 ez file     3. 1040 ez file   Subtract line 2 from line 1 3. 1040 ez file     4. 1040 ez file   Settlement fees or closing costs. 1040 ez file (See Settlement costs in Publication 551. 1040 ez file ) If line 1 includes the adjusted basis of the new home from Form 2119, skip lines 4a-4g and 5; go to line 6. 1040 ez file         a. 1040 ez file Abstract and recording fees 4a. 1040 ez file       b. 1040 ez file Legal fees (including fees for title search and preparing documents) 4b. 1040 ez file       c. 1040 ez file Survey fees 4c. 1040 ez file       d. 1040 ez file Title insurance 4d. 1040 ez file       e. 1040 ez file Transfer or stamp taxes 4e. 1040 ez file       f. 1040 ez file Amounts that the seller owed that you agreed to pay (back taxes or interest, recording or mortgage fees, and sales commissions) 4f. 1040 ez file       g. 1040 ez file Other 4g. 1040 ez file     5. 1040 ez file   Add lines 4a through 4g 5. 1040 ez file     6. 1040 ez file   Cost of additions and improvements. 1040 ez file (See Increases to Basis in Publication 551. 1040 ez file ) Do not include any additions and improvements included on line 1 6. 1040 ez file     7. 1040 ez file   Special tax assessments paid for local improvements, such as streets and sidewalks 7. 1040 ez file     8. 1040 ez file   Other increases to basis 8. 1040 ez file     9. 1040 ez file   Add lines 3, 5, 6, 7, and 8 9. 1040 ez file     10. 1040 ez file   Depreciation allowed or allowable, related to the business use or rental of the home 10. 1040 ez file 0   11. 1040 ez file   Other decreases to basis (See Decreases to Basis in Publication 551. 1040 ez file ) 11. 1040 ez file     12. 1040 ez file   Add lines 10 and 11 12. 1040 ez file     13. 1040 ez file   Cost or other (adjusted) basis of home damaged or destroyed. 1040 ez file Subtract line 12 from line 9. 1040 ez file Enter here and on Schedule 20, line 2 13. 1040 ez file     Worksheet A Instructions. 1040 ez file If you use Worksheet A to figure the cost or other (adjusted) basis of your home, follow these instructions. 1040 ez file DO NOT use this worksheet to determine your basis if you acquired an interest in your home from a decedent who died in 2010 and whose executor filed Form 8939. 1040 ez file IF. 1040 ez file . 1040 ez file . 1040 ez file   THEN. 1040 ez file . 1040 ez file . 1040 ez file you inherited your home from a decedent who died either before or after 2010 or from a decedent who died in 2010 and whose executor did not file Form 8939. 1040 ez file 1 skip lines 1–4 of the worksheet. 1040 ez file 2 find your basis using the rules under Inherited Property in Publication 551. 1040 ez file Enter this amount on line 5 of the worksheet. 1040 ez file 3 fill out lines 6–13 of the worksheet. 1040 ez file you received your home as a gift 1 read Property Received as a Gift in Publication 551 and enter on lines 1 and 3 of the worksheet either the donor's adjusted basis or the home's fair market value at the time of the gift, whichever is appropriate. 1040 ez file 2 if you can add any federal gift tax to your basis, enter that amount on line 5 of the worksheet. 1040 ez file 3 fill out the rest of the worksheet. 1040 ez file you received your home as a trade for other property 1 enter on line 1 of the worksheet the fair market value of the other property at the time of the trade. 1040 ez file (But if you received your home as a trade for your previous home before May 7, 1997, and had a gain on the trade that you postponed using Form 2119, enter on line 1 of the worksheet the adjusted basis of the new home from that Form 2119. 1040 ez file ) 2 fill out the rest of the worksheet. 1040 ez file you built your home 1 add the purchase price of the land and the cost of building the home. 1040 ez file Enter that total on line 1 of the worksheet. 1040 ez file (However, if you filed a Form 2119 to postpone gain on the sale of a previous home before May 7, 1997, enter on line 1 of the worksheet the adjusted basis of the new home from that Form 2119. 1040 ez file ) 2 fill out the rest of the worksheet. 1040 ez file you received your home from your spouse after July 18, 1984 1 skip lines 1–4 of the worksheet. 1040 ez file 2 enter on line 5 of the worksheet your spouse's cost or other (adjusted) basis in the home just before you received it. 1040 ez file 3 fill out lines 6–13 of the worksheet, making adjustments to basis only for events after the transfer. 1040 ez file you owned a home jointly with your spouse, who transferred his or her interest in the home to you after July 18, 1984     fill out one worksheet, making adjustments to basis for events both before and after the transfer. 1040 ez file   you received your home from your spouse before July 19, 1984 1 skip lines 1–4 of the worksheet. 1040 ez file 2 enter on line 5 of the worksheet the home's fair market value at the time you received it. 1040 ez file 3 fill out lines 6–13 of the worksheet, making adjustments to basis only for events after the transfer. 1040 ez file you owned a home jointly with your spouse, and your spouse transferred his or her interest in the home to you before July 19, 1984 1 fill out a worksheet, lines 1–13, making adjustments to basis only for events before the transfer. 1040 ez file 2 multiply the amount on line 13 of that worksheet by 50% (0. 1040 ez file 50) to get the adjusted basis of your half-interest at the time of the transfer. 1040 ez file 3 multiply the fair market value of the home at the time of the transfer by 50% (0. 1040 ez file 50). 1040 ez file Generally, this is the basis of the half-interest that your spouse owned. 1040 ez file 4 add the amounts from steps 2 and 3 and enter the total on line 5 of a second worksheet. 1040 ez file 5 complete lines 6–13 of the second worksheet, making adjustments to basis only for events after the transfer. 1040 ez file you owned your home jointly with a nonspouse 1 fill out lines 1–13 of the worksheet. 1040 ez file 2 multiply the amount on line 13 by your percentage of ownership to get the adjusted basis of your part-interest. 1040 ez file Worksheet A Instructions. 1040 ez file (Continued) IF. 1040 ez file . 1040 ez file . 1040 ez file   THEN. 1040 ez file . 1040 ez file . 1040 ez file you owned your home jointly with your spouse who died before 2010 and before the casualty 1 fill out a worksheet, lines 1–13, including adjustments to basis only for events before your spouse's death. 1040 ez file 2 multiply the amount on line 13 of that worksheet by 50% (0. 1040 ez file 50) to get the adjusted basis of your half-interest on the date of death. 1040 ez file 3 figure the basis for the half-interest owned by your spouse. 1040 ez file This is one-half of the fair market value on the date of death (or later alternate valuation used for estate or inheritance tax). 1040 ez file (The basis in your half will remain one-half of the adjusted basis determined in step 2. 1040 ez file ) 4 add the amounts from steps 2 and 3 and enter the total on line 5 of a second worksheet. 1040 ez file 5 complete lines 6–13 of the second worksheet, making adjustments to basis only for events after your spouse's death. 1040 ez file you owned your home jointly with your spouse who died before 2010 and before the casualty, and your permanent legal home is in a community property state 1 skip lines 1–4 of the worksheet. 1040 ez file 2 enter the amount of your basis on line 5 of the worksheet. 1040 ez file Generally, this is the fair market value of the home at the time of death. 1040 ez file (But see Community Property in Publication 551 for special rules. 1040 ez file ) 3 fill out lines 6–13 of the worksheet, making adjustments to basis only for events after your spouse's death. 1040 ez file you owned your home jointly with a nonspouse who died before 2010 and before the casualty 1 fill out lines 1–13 of the worksheet, including adjustments to basis only for events before the co-owner's death. 1040 ez file 2 multiply the amount on line 13 by your percentage of ownership to get the adjusted basis of your part-interest on the date of death. 1040 ez file 3 multiply the fair market value on the date of death (or later alternate valuation used for estate or inheritance tax) by the co-owner's percentage of ownership. 1040 ez file This is the basis for the co-owner's part-interest. 1040 ez file 4 add the amounts from steps 2 and 3 and enter the total on line 5 of a second worksheet. 1040 ez file 5 complete lines 6–13 of the second worksheet, including adjustments to basis only for events after the co-owner's death. 1040 ez file your home was ever damaged as a result of a prior casualty 1 on line 8 of the worksheet, enter any amounts you spent to restore the home to its condition before the prior casualty. 1040 ez file 2 on line 11 enter: any insurance reimbursements you received (or expect to receive) for the prior loss,  and any deductible casualty losses from prior years not covered by insurance. 1040 ez file the person who sold you your home paid points on your loan and you bought your home after 1990 but before April 4, 1994. 1040 ez file   on line 2 enter the seller-paid points only if you deducted them as home mortgage interest in the year paid (unless you used the seller-paid points to reduce the amount on line 1). 1040 ez file the person who sold you your home paid points on your loan and you bought your home after April 3, 1994   on line 2 enter the seller-paid points even if you did not deduct them (unless you used the seller-paid points to reduce the amount on line 1). 1040 ez file you used part of the property as your home and part of it for business or to produce rental income   you must allocate the entries on Worksheet A between the personal part (column (a)) and the business/rental part (column (b)). 1040 ez file none of these items apply   fill out the entire worksheet. 1040 ez file Prev  Up  Next   Home   More Online Publications
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The 1040 Ez File

1040 ez file 6. 1040 ez file   How To Figure Cost of Goods Sold Table of Contents Introduction Figuring Cost of Goods Sold on Schedule C, Lines 35 Through 42Line 35 Inventory at Beginning of Year Line 36 Purchases Less Cost of Items Withdrawn for Personal Use Line 37 Cost of Labor Line 38 Materials and Supplies Line 39 Other Costs Line 40 Add Lines 35 through 39 Line 41 Inventory at End of Year Line 42 Cost of Goods Sold Introduction If you make or buy goods to sell, you can deduct the cost of goods sold from your gross receipts on Schedule C. 1040 ez file However, to determine these costs, you must value your inventory at the beginning and end of each tax year. 1040 ez file This chapter applies to you if you are a manufacturer, wholesaler, or retailer or if you are engaged in any business that makes, buys, or sells goods to produce income. 1040 ez file This chapter does not apply to a personal service business, such as the business of a doctor, lawyer, carpenter, or painter. 1040 ez file However, if you work in a personal service business and also sell or charge for the materials and supplies normally used in your business, this chapter applies to you. 1040 ez file If you must account for an inventory in your business, you must generally use an accrual method of accounting for your purchases and sales. 1040 ez file For more information, see chapter 2. 1040 ez file Figuring Cost of Goods Sold on Schedule C, Lines 35 Through 42 Figure your cost of goods sold by filling out lines 35 through 42 of Schedule C. 1040 ez file These lines are reproduced below and are explained in the discussion that follows. 1040 ez file 35 Inventory at beginning of year. 1040 ez file If different from last year's closing inventory, attach explanation   36 Purchases less cost of items withdrawn for personal use   37 Cost of labor. 1040 ez file Do not include any amounts paid to yourself   38 Materials and supplies   39 Other costs   40 Add lines 35 through 39   41 Inventory at end of year   42 Cost of goods sold. 1040 ez file Subtract line 41 from line 40. 1040 ez file  Enter the result here and on line 4   Line 35 Inventory at Beginning of Year If you are a merchant, beginning inventory is the cost of merchandise on hand at the beginning of the year that you will sell to customers. 1040 ez file If you are a manufacturer or producer, it includes the total cost of raw materials, work in process, finished goods, and materials and supplies used in manufacturing the goods (see Inventories in chapter 2). 1040 ez file Opening inventory usually will be identical to the closing inventory of the year before. 1040 ez file You must explain any difference in a schedule attached to your return. 1040 ez file Donation of inventory. 1040 ez file   If you contribute inventory (property that you sell in the course of your business), the amount you can claim as a contribution deduction is the smaller of its fair market value on the day you contributed it or its basis. 1040 ez file The basis of donated inventory is any cost incurred for the inventory in an earlier year that you would otherwise include in your opening inventory for the year of the contribution. 1040 ez file You must remove the amount of your contribution deduction from your opening inventory. 1040 ez file It is not part of the cost of goods sold. 1040 ez file   If the cost of donated inventory is not included in your opening inventory, the inventory's basis is zero and you cannot claim a charitable contribution deduction. 1040 ez file Treat the inventory's cost as you would ordinarily treat it under your method of accounting. 1040 ez file For example, include the purchase price of inventory bought and donated in the same year in the cost of goods sold for that year. 1040 ez file   A special rule may apply to certain donations of food inventory. 1040 ez file See Publication 526, Charitable Contributions. 1040 ez file Example 1. 1040 ez file You are a calendar year taxpayer who uses an accrual method of accounting. 1040 ez file In 2013, you contributed property from inventory to a church. 1040 ez file It had a fair market value of $600. 1040 ez file The closing inventory at the end of 2012 properly included $400 of costs due to the acquisition of the property, and in 2012, you properly deducted $50 of administrative and other expenses attributable to the property as business expenses. 1040 ez file The charitable contribution allowed for 2013 is $400 ($600 − $200). 1040 ez file The $200 is the amount that would be ordinary income if you had sold the contributed inventory at fair market value on the date of the gift. 1040 ez file The cost of goods sold you use in determining gross income for 2013 must not include the $400. 1040 ez file You remove that amount from opening inventory for 2013. 1040 ez file Example 2. 1040 ez file If, in Example 1, you acquired the contributed property in 2013 at a cost of $400, you would include the $400 cost of the property in figuring the cost of goods sold for 2013 and deduct the $50 of administrative and other expenses attributable to the property for that year. 1040 ez file You would not be allowed any charitable contribution deduction for the contributed property. 1040 ez file Line 36 Purchases Less Cost of Items Withdrawn for Personal Use If you are a merchant, use the cost of all merchandise you bought for sale. 1040 ez file If you are a manufacturer or producer, this includes the cost of all raw materials or parts purchased for manufacture into a finished product. 1040 ez file Trade discounts. 1040 ez file   The differences between the stated prices of articles and the actual prices you pay for them are called trade discounts. 1040 ez file You must use the prices you pay (not the stated prices) in figuring your cost of purchases. 1040 ez file Do not show the discount amount separately as an item in gross income. 1040 ez file   An automobile dealer must record the cost of a car in inventory reduced by any manufacturer's rebate that represents a trade discount. 1040 ez file Cash discounts. 1040 ez file   Cash discounts are amounts your suppliers let you deduct from your purchase invoices for prompt payments. 1040 ez file There are two methods of accounting for cash discounts. 1040 ez file You can either credit them to a separate discount account or deduct them from total purchases for the year. 1040 ez file Whichever method you use, you must be consistent. 1040 ez file If you want to change your method of figuring inventory cost, you must file Form 3115, Application for Change in Accounting Method. 1040 ez file For more information, see Change in Accounting Method in chapter 2. 1040 ez file   If you credit cash discounts to a separate account, you must include this credit balance in your business income at the end of the tax year. 1040 ez file If you use this method, do not reduce your cost of goods sold by the cash discounts. 1040 ez file Purchase returns and allowances. 1040 ez file   You must deduct all returns and allowances from your total purchases during the year. 1040 ez file Merchandise withdrawn from sale. 1040 ez file   If you withdraw merchandise for your personal or family use, you must exclude this cost from the total amount of merchandise you bought for sale. 1040 ez file Do this by crediting the purchases or sales account with the cost of merchandise you withdraw for personal use. 1040 ez file You must also charge the amount to your drawing account. 1040 ez file   A drawing account is a separate account you should keep to record the business income you withdraw to pay for personal and family expenses. 1040 ez file As stated above, you also use it to record withdrawals of merchandise for personal or family use. 1040 ez file This account is also known as a “withdrawals account” or “personal account. 1040 ez file ” Line 37 Cost of Labor Labor costs are usually an element of cost of goods sold only in a manufacturing or mining business. 1040 ez file Small merchandisers (wholesalers, retailers, etc. 1040 ez file ) usually do not have labor costs that can properly be charged to cost of goods sold. 1040 ez file In a manufacturing business, labor costs properly allocable to the cost of goods sold include both the direct and indirect labor used in fabricating the raw material into a finished, saleable product. 1040 ez file Direct labor. 1040 ez file   Direct labor costs are the wages you pay to those employees who spend all their time working directly on the product being manufactured. 1040 ez file They also include a part of the wages you pay to employees who work directly on the product part time if you can determine that part of their wages. 1040 ez file Indirect labor. 1040 ez file   Indirect labor costs are the wages you pay to employees who perform a general factory function that does not have any immediate or direct connection with making the saleable product, but that is a necessary part of the manufacturing process. 1040 ez file Other labor. 1040 ez file   Other labor costs not properly chargeable to the cost of goods sold can be deducted as selling or administrative expenses. 1040 ez file Generally, the only kinds of labor costs properly chargeable to your cost of goods sold are the direct or indirect labor costs and certain other costs treated as overhead expenses properly charged to the manufacturing process, as discussed later under Line 39 Other Costs. 1040 ez file Line 38 Materials and Supplies Materials and supplies, such as hardware and chemicals, used in manufacturing goods are charged to cost of goods sold. 1040 ez file Those that are not used in the manufacturing process are treated as deferred charges. 1040 ez file You deduct them as a business expense when you use them. 1040 ez file Business expenses are discussed in chapter 8. 1040 ez file Line 39 Other Costs Examples of other costs incurred in a manufacturing or mining process that you charge to your cost of goods sold are as follows. 1040 ez file Containers. 1040 ez file   Containers and packages that are an integral part of the product manufactured are a part of your cost of goods sold. 1040 ez file If they are not an integral part of the manufactured product, their costs are shipping or selling expenses. 1040 ez file Freight-in. 1040 ez file   Freight-in, express-in, and cartage-in on raw materials, supplies you use in production, and merchandise you purchase for sale are all part of cost of goods sold. 1040 ez file Overhead expenses. 1040 ez file   Overhead expenses include expenses such as rent, heat, light, power, insurance, depreciation, taxes, maintenance, labor, and supervision. 1040 ez file The overhead expenses you have as direct and necessary expenses of the manufacturing operation are included in your cost of goods sold. 1040 ez file Line 40 Add Lines 35 through 39 The total of lines 35 through 39 equals the cost of the goods available for sale during the year. 1040 ez file Line 41 Inventory at End of Year Subtract the value of your closing inventory (including, as appropriate, the allocable parts of the cost of raw materials and supplies, direct labor, and overhead expenses) from line 40. 1040 ez file Inventory at the end of the year is also known as closing or ending inventory. 1040 ez file Your ending inventory will usually become the beginning inventory of your next tax year. 1040 ez file Line 42 Cost of Goods Sold When you subtract your closing inventory (inventory at the end of the year) from the cost of goods available for sale, the remainder is your cost of goods sold during the tax year. 1040 ez file Prev  Up  Next   Home   More Online Publications