Your beginning inventory for this year, should always be the same as your ending inventory in last year's tax return, unless you had some major adjustments or errors in your tax return.
In this post, we'll share exactly where you can find your ending inventory balance on last year's tax year, no matter the tax entity-type of your business.
For C corporations, S corporations, and partnerships (or LLCs that pay tax as partnerships), you can find this amount on Form 1125-A which is attached to your business tax return:
Form 1125-A (Cost of Goods Sold), Line 7
If you don't see Form 1125-A, you can also check out your Schedule L. Here is where to find it for C corporations, S corporations, or partnerships:
C corporations - Form 1120 (U.S. Corporation Tax Return)
Page 6, Schedule L, Line 3
S corporations - Form 1120-S (U.S. Income Tax Return for an S Corporation)
Page 4, Schedule L, Line 3
Partnerships - Form 1065 (U.S. Return of Partnership Income)
Page 5, Schedule L, Line 3
For sole proprietor / single-member LLC that files a Schedule C (Profit or Loss from Business) with your personal tax return, you can find this number here:
Page 2, Part III, Line 41