I have a design business, I printed these designs on tshirts.

I have given some away, reducing inventory in the hopes of stimulating sales.

Where do I account for this with regards to taxes?

have given some away, reducing inventory in the hopes of stimulating sales. ====>>>>>>>>>Actually as you can see, this way does not stimulate sales unless you actually increase your sales by selling your inventories to your clients. Inventory turnover is one measure of a company's performance and financial health.high inventory turnovers generally mean a company is holding lower inventory compared to its sales.increasing inventory turnover often means sales are increasing above expected levels.Clearly, inventory could increase sales: expanding inventory creates more choice options, colors, etc. and might signal a popular/desirable product. Or, inventory might encourage a consumer to continue her search e.g., on the theory that she can return if nothing better is found, thereby decreasing sales.

Where do I account for this with regards to taxes?===========>>>>>>>>you need to report your inventory decrease on your sch c of 1040; The expenses for creating inventory go on the back of Sch C, Part III, where ten lines are all it takes to establish the basis for your cost of goods sold.as you decrease your inventory, this’d decrease decrease your cogs and increasegross profit just like in fifo inv valuation situation on your sch c.