Turbo tax is not showing cost of goods sold as a business expense category. Where can I find it in turbo tax?

[AliciaP1]

TurboTax calculates Cost of Goods Sold through the inventory entry section.

To get to inventory in TurboTax Online you can follow these steps:

1. Within your tax return, go to your self-employed income or use the magnifying glass to search for Schedule C and click Jump to schedule c.
2. On the Your 2022 self-employed work summary page click Edit.
3. Scroll down to Inventory and click Start.
4. Answer the remaining questions regarding beginning/ending balances and current-year expenditures.

[lilies4goldberry]

On that page what is the difference between Cost of purchases and Materials and Supplies?

[ee-ea]

Cost of goods sold (COGS) refers to the direct costs of producing the goods sold by a company. This amount includes the cost of the materials and labor directly used to create the good. It excludes indirect expenses, such as distribution costs and sales force costs.

Supplies are the stuff used up in getting the work done or stuff turned over to the client.

[AbrahamT]

In the search bar, type in Sch c, then jump to Sch C, then Inventory/Cost of Goods Sold. Costs are those to actually make your product.Materials and supplies are items that become a part of the finished product, but are not considered actual raw materials.  Click on the Learn more button for more information. See here

 

[PG60]

My question is answer the question. This a 2024 return and there is no place to enter $25000 of building supplies. 

[MonikaK1]

How you enter the supplies depends on the type of supplies and how they are used in the business.

If the building supplies are material used in the construction of property that you track from year to year, you can enter them in the Materials and Supplies section under Inventory and Cost of Goods Sold, as shown in the screenshot earlier in this thread.

If these are miscellaneous supplies that are used up over the course of the year, then you can enter them under the Business Expenses section as Supplies.

See also this TurboTax help article regarding inventory. If you don't have inventory but want to report materials and supplies as COGS, select Inventory and then enter 0 for both beginning and ending inventory values.

@PG60