For supplies that aren't inventory, the expense is taken in the year the supplies are purchased. Whether the supplies were stolen, damaged or sold, they are still expensed in the year paid. If, this year, you had to purchase more supplies in order to replace those stolen, you will claim those expenses this year.
To enter your home office, vehicle mileage,
supplies and other common business expenses:
·
Type “Schedule C”
in the Search box.
·
Select the “Jump
to” link.
·
Select Add
expenses for this work (or Edit and navigate down to Business
Expenses). (See the attached screenshot below. Click to enlarge.)
Remember to enter 1099-MISC,
1099-K,
cash, and personal check income from your self-employment before you associate
any expenses with your business.
If you have any other details regarding this question, please feel free to post them in the comment section.
Here's a little info about inventory:
There are two basic types of businesses in regards to
this issue. If you make and/or sell merchandise you would enter it in COGS as
indicated below. If you merely have a service type of business, you would enter
it as an expense.
Per the IRS:
"How To Figure
Cost of Goods Sold
"If you make or buy goods to sell, you can deduct the cost
of goods sold from your gross receipts on Schedule C. However, to determine
these costs, you must value your inventory at the beginning and end of each tax
year.
This chapter applies to you if you are a manufacturer,
wholesaler, or retailer or if you are engaged in any business that makes, buys,
or sells goods to produce income. This chapter does not apply to a personal
service business, such as the business of a doctor, lawyer, carpenter, or painter.
However, if you work in a personal service business and also sell or charge for
the materials and supplies normally used in your business, this chapter applies
to you."
