- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Business & farm
If you purchased this item for resale, it should be shown as a purchase in Cost of Goods Sold.
Follow the instructions below to enter "Cost of Goods Sold":
- In your Federal return, choose the tab for Wages & Income
- Then, scroll down to the section Self-employment income and expenses and Show more/Start/Review
- On the Let's gather your business info screen you'll see Business Income and Expenses.
- Click on Start/Update The next screen will be Here's the business info we have so far. If you have been here before you can just select Edit.
- On the next screen, choose Inventory/Cost of Goods Sold and Start/Update.
(See @KittyM 's post above)
If you purchased the water machine for use by you and your employees (or as a demonstration model, not to be sold), then enter it in the Business Assets interview. The interview will guide you through the necessary steps to "expense" the item in the current year or depreciate it over its useful life.
March 23, 2021
3:03 PM