Are raw materials for a finished product a 100% deductible?
For example: A contractor billed his business customers for raw materials plus labor and tax. He received a 1099 for the total cost of the bill together.
In turbo tax, there is a section to report 1099 income. The question is: Raw materials and tax are not his income. Does he subtract them off the total for 1099 income when he report his income or how would you suggest the best way to do that?
