GeorgeM777
Expert Alumni

Business & farm

No, it does not appear that the wages you pay the subcontractors would be included in cost of goods sold.  Cost of goods sold only includes the expenses that go into the production of a product or service you sell (e.g., wood, screws, paint, labor, etc.).  When calculating cost of goods sold, do not include the cost of creating products or services that you don’t sell. 

 

In your case, the project does not appear to be a product or service that you are selling.  Therefore, your subcontractor expenses would probably be characterized as general labor costs.  

 

@passj

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