Dear All,
Any suggestions please. I am currently self-employed, working from home workshop. All my parts required hand labor. My question is about taking deductions on Scrap parts from fail attempts. For example, I would take a precut piece of titanium, each blank piece of titanium cost me about $3. I would hand stamp initials lettering or stamp artworks (Cross, Peace Sign, Skull, Butterfly, Heart etc...) onto the surface of titanium. If I stamp the letter or artwork crooked being off center, it is failed attempt and i would scrap it. Customers would not accept crooked letters. Because all my parts are handmade, there is no way for my to get 100% success production rate. I would estimate that for every 10 order tries, about 2 tries failed on average. That's $6 loss for 2 piece. Can this loss be tax deduction for business production loss? If yes, where should I input this information? I have Turbo Tax Home Business
