Hi There, I started a business in 2022 and have about $10,000 in expenses which are not part of my materials of sold items. I know to put the small tools and books under Other Misc. Expense, but I am confused about where to put other things that I use in production. The Supplies seem to apply to things you would find in an office, and the description says, "Supply expenses are incidental items that cost $200 or less or last less than a year." The supplies that I have purchased for my business are other types of supplies that are needed for production but not included in sold items because it would be too hard to factor that in. For example, I wrap my jewelry in a decorative embroidered pouch and place it in a gift box with a ribbon and paper flowers on top before shipping. I also give a embroidered jewelry roll as a gift with purchase when a certain dollar amount is purchased. I have bought these items in bulk, and the jewelry rolls cost over $1000 for a pack of $250. Also, since I am expensing COGS and not showing the IRS my inventory, where does that amount go? That figure is around $4000. Please let me know how to deal with these costs using Turbo Tax Home & Business. Thank you!
