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If you are located in an Official Disaster Area, the IRS usually issues special instructions for requesting penalty abatement. Line 36. Purchases less cost of items withdrawn for personal use. Let's break this down into two parts: 1) Purchases. That's easy. Simply add up the cost (at your wholesale cost, not the retail price you intend to sell it) of all your product which was bought during the year. If you didn't use any of these products yourself, you're done. Just put that amount on Line 36. But if you did happen to take some of your product and use it yourself, then the second part of this description comes into play: 2) less cost of items withdrawn for personal use. If you have any product that was withdrawn for personal use, you must subtract that amount from the total amount of product purchased and enter the difference on Line 36.
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