Self-employed Business, Professional, Commission, Farming, and Fishing Income: How to calculate the mandatory inventory adjustment (MIA)

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Self-employed Business, Professional, Commission, Farming, and Fishing Income: How to calculate the mandatory inventory adjustment (MIA)

For instructions on how to fill in the following charts, see Line 9942 – Mandatory inventory adjustment included in the current year.

Chart 1
Cash cost of purchased inventory

Enter the amount you paid by the end of the 2023 fiscal period for the specified animals you bought:

Fiscal period

Cash cost

in your 2023 fiscal period

$
Line 1

in your 2022 fiscal period

$
Line 2

in your 2021 fiscal period

$
Line 3

in your 2020 fiscal period

$
Line 4

before your 2020 fiscal period

$
Line 5

Enter the amount you paid by the end of your 2023 fiscal period for all other inventory you bought:

in your 2023 fiscal period

$
Line 6

in your 2022 fiscal period

$
Line 7

in your 2021 fiscal period

$
Line 8

in your 2020 fiscal period

$
Line 9

before your 2020 fiscal period

$
Line 10

Chart 2
Value of purchased inventory for specified animals

Inventory bought in your 2023 fiscal period
Enter an amount that is not more than the amount from line 1, but not less than 70% of this amount.

$ Blank space for dollar value
Line 11

Inventory bought in your 2022 fiscal period
Enter an amount that is not more than the amount from line 2, but not less than 70% of the total of the value at the end of your 2022 fiscal period plus any amounts you paid in your 2023 fiscal period toward the purchase price.

$ Blank space for dollar value
Line 12

Inventory bought in your 2021 fiscal period
Enter an amount that is not more than the amount from line 3, but not less than 70% of the total of the value at the end of your 2022 fiscal period plus any amounts you paid in your 2023 fiscal period toward the purchase price.

$ Blank space for dollar value
Line 13

Inventory bought in your 2020 fiscal period
Enter an amount that is not more than the amount from line 4, but not less than 70% of the total of the value at the end of your 2022 fiscal period plus any amounts you paid in your 2023 fiscal period toward the purchase price.

$ Blank space for dollar value
Line 14

Inventory bought before your 2020 fiscal period
Enter an amount that is not more than the amount from line 5, but not less than 70% of the total of the value at the end of your 2022 fiscal period plus any amounts you paid in your 2023 fiscal period toward the purchase price.

$ Blank space for dollar value
Line 15

Chart 3
Value of purchased inventory for all other inventory

Inventory bought in your 2023 fiscal period
Enter the amount from line 6 or the fair market value, whichever is less.

$ Blank space for dollar value
Line 16

Inventory bought in your 2022 fiscal period
Enter the amount from line 7 or the fair market value, whichever is less.

$ Blank space for dollar value
Line 17

Inventory bought in your 2021 fiscal period
Enter the amount from line 8 or the fair market value, whichever is less.

$ Blank space for dollar value
Line 18

Inventory bought in your 2020 fiscal period
Enter the amount from line 9 or the fair market value, whichever is less.

$ Blank space for dollar value
Line 19

Inventory bought before your 2020 fiscal period
Enter the amount from line 10 or the fair market value, whichever is less.

$ Blank space for dollar value
Line 20

Chart 4
Calculation of MIA

Enter the amount of your net loss from line 9899 of Form T2042.

$ Blank space for dollar value
Line 21

Enter the value of your inventory from Chart 2 and Chart 3:

the amount from line 11

$ Blank space for dollar value

the amount from line 12

$ Blank space for dollar value

the amount from line 13

$ Blank space for dollar value

the amount from line 14

$ Blank space for dollar value

the amount from line 15

$ Blank space for dollar value

the amount from line 16

$ Blank space for dollar value

the amount from line 17

$ Blank space for dollar value

the amount from line 18

$ Blank space for dollar value

the amount from line 19

$ Blank space for dollar value

the amount from line 20

$ Blank space for dollar value

Total value of inventory

$ Blank space for dollar value
$ Blank space for dollar value
Line 22

MIA – Enter the amount from line 21 or line 22, whichever is less.

$ Blank space for dollar value
Line 23


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Date modified:
2024-04-30