Own a single member LLC (online clothing store), and filing using cash method. No profit yet after deducting shipping costs and advertising.
- When filing through turbotax, do I enter my sales income when asked to enter "Other self-employed income". Basically just what my profit is after subtracting the cost I paid for the clothing? For example if my Total Sales are $7000, and my cost to purchase the sold clothing is $4000, my total profit would be $3000 and I should enter that under "other self employed income"?
- Also, Under expenses, do I just add supplies (for the cost I paid for the clothing)?
TurboTax is designed to allow you to transfer information easily from your bookkeeping records.
You will enter the Total Sales information:
Then you will be able to enter your expenses in as much detail as you have tracked in your bookkeeping records:
You can work your way through the self-employed interview and be confident that you will not miss any allowable expenses that will reduce your tax bill.