assuming this is not a hobby, and you are self-employed. file schedule C and if you don't account for inventory per schedule C instructions
Line 22
In most cases, you can deduct the cost of
materials and supplies only to the extent
you actually consumed and used them in
your business during the tax year (unless
you deducted them in a prior tax year).
However, if you had incidental materials
and supplies on hand for which you kept
no inventories or records of use, you can
deduct the cost of those you actually
purchased during the tax year, provided
that method clearly reflects income.
if you account for inventories, you will use part III of schedule C and either line 36 or 38
