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posted Apr 13, 2025 4:39:20 AM

Do supplies used to fix up a house that is going to be sold and was bought with my business , count as inventory?

My business is fixing up houses , remodeling, and re-sale the house. DO the supplies I used to fix up the house count as inventory?

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1 Replies
Expert Alumni
Apr 13, 2025 6:20:08 AM

I would think the items that you mention would be reported as Supplies or Tools and not Inventory.

 

A business that purchases, produces or sells merchandise to generate income maintains those items in Inventory and generates a Cost of Goods Sold.

 

See here.