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Level 4
posted Jan 21, 2023 7:31:51 AM

Can "Freight out" be a part of Cost Of Goods Sold and not an expense?

I have seen conflicting information. If it is an expense, and not a part of "cost of goods sold", where is it included on form 1065. We are a multi-member LLC taxed as a partnership.

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1 Best answer
Level 15
Jan 21, 2023 7:40:38 AM

Freight-in is typically included in the Cost of Goods Sold while freight-out is typically an expense (which can be included as Other deductions on Line 20).

1 Replies
Level 15
Jan 21, 2023 7:40:38 AM

Freight-in is typically included in the Cost of Goods Sold while freight-out is typically an expense (which can be included as Other deductions on Line 20).