On Turbo Tax: Business Income and Expenses Tab.
What is the difference between the following two items:
1. Inventory / Cost of Goods Sold
2. Business Expenses
In particular, I own wood working business and I had to buy a lot of equipment to manufacture the products I am selling. My assumption is; I shouldn't put the equipment cost in the Inventory/Cost of Goods sold; and instead I should put it in the business expenses. Is that right?
Thanks,
Eliyah
