I've done taxes the past 3 years for a small auto dealership. They only sell 3 or 4 cars a year. They closed in 2009. After selling 2 cars and transferring 3 cars to personal use, there is $6,560 of value left in inventory with no vehicles to assign it to. Obviously this is the result of poor bookkeeping. How do I account for this on the Sch C. If I allow it to carry forward from Part III to Part I it results in a loss of $6,560. Is this all I need to do, or do I need to account for it in some other manner.
Thanks
Sherm