Totaling your purchases (for income taxes)

The IRS requires that you enter the cost of your purchases when you calculate cost of goods sold. You can determine the amount of your purchases by creating a purchases by item summary report.

To total your purchases for income taxes:

  1. Choose Reports > Purchases > By Item Summary.
  2. When the report appears, make sure that the date range shown in the Dates field corresponds to the tax period you want the report to cover.

    If the date range is incorrect, choose the correct date range from the list.

  3. Note the total at the bottom of the report. This is the amount to fill in the Cost of Goods Sold section of your tax form.