You have a couple of options:
- If you use form 1125-A for your CGS, and these expenses fall in line with the selling of your inventory, then put them on line 5 other costs.
- You can also put them on line 26 of Form 1120 and just title it Contracted Labor.
- Regardless of the location, the end result will be the same.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
