You don't list every purchase in TurboTax. You categorize all the expenses, such as advertising, computer software, etc.
1. In the example you gave, report $3,000 as gross receipts (income), deduct $1,000 as Graphics software. If you don't see any built-in categories, you can add them in the Miscellaneous expenses section. Provide a description of the expense and enter the amount.
2. Graphic software: $3,000
3. Categorize all your expenses and keep a good record of them. Save them for the IRS agents just in case you are audited.
Whatever you deduct on your Schedule C, make sure you can substantiate every one of the expenses.
@cchan213
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