You have an interesting situation, so rather than telling you what to do I will give you three alternatives.
- You could expense the entire order stating that it is supplies , and in general that is the correct procedure. However, You have presented to me that this will last several years. Expenses generally deplete in a short period of time.
- You can elect to depreciate the order. This will take a fixed amount each year and allocate it to your expenses.
- Finally, you can take it as inventory, with the understanding that it is used to "package" your jewelry. In this case you would evaluate how much you have left each year and get the deduction based solely on what you used.
I think the second answer here is easier and more traditional, but the third answer would measure you business activity more accurately.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
