ThomasM125
Expert Alumni

Business & farm

That would be considered a component of cost of goods sold in my opinion, as it is a direct cost of production. In other words, the cost is directly associated with a job as opposed to being an overhead expense like office wages.

 

There is a separate line for the cost of labor on a schedule C and corporate tax returns for the labor component of Cost of Goods Sold. It belongs there.

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