Independent stylist with Color Street

[Akumher]

I am an independent stylist with Color Street. When purchasing gifts and giveaway items such as a tumbler, face masks, nail files, etc. Would you classify those as advertising expenses? Also, I do not do inventory I purchase all my nail sets to use as giveaways or I will put on a set on and post it in group for advertisement. Can all my sets be wrote off as expenses or advertising?  If you put that you had an inventory because you thought you had to can you change it to no the next year? 

[cabusby1]

Yes, your giveaway items can be classified as advertising expenses. It's additionally not necessary to carry an inventory on your supplies. They can be listed as expenses and deducted from your income.

https://turbotax.intuit.com/tax-tips/self-employment-taxes/work-as-a-hair-stylist-tax-tips-for-haird...

[cabusby1]

Here is a link to common deductions for your industry. https://blog.turbotax.intuit.com/self-employed/self-employed-tax-deductions-calculator-2021-2022-509....

[Akumher]

So the nail sets can be listed as a supplies? 

[Akumher]

If you do a bulk order because a couple customers just want 1 set and they are paying you for that set would you consider that commission? I buy the set then they are just paying me back. 

[cabusby1]

If you're using the sets as a part of your business, they can be listed as expenses. You would determine if they would fall under the category of advertising (such as your giveaways or ads) or normal operating supplies if you are using them on customers. 

[cabusby1]

You would list the bulk purchase as an expense, and then the payments from the customers as income.