I OWN A USED CAR BUSINESS THAT BUYS TOTAL LOSS CARS FROM INSURANCE AUCTIONS, PAYS BODY SHOPS FOR REPAIRS AND SELLS THEM TO THE PUBLIC

[smturgutalp]

I own a used car sales business, the way i operate is different from other dealers. I buy totaled salvage vehicles from insurance companies, buy parts necessary for the repair, pay body shops to repair them and sell them to the public.

1: I enter the total sales receipts (not profit) in Business Income?

2: I enter the amount i paid for the cars in Cost of Purchases?

3: Cost of purchases include end year inventory?

4: Where should i enter the amount i paid for parts? Materials&Supplies?

5: Where should i enter the amount i paid to body shops? Other Costs to Prepare for Sales?

6: Or the amount i spend to repair these cars should be under business expenses?

Appreciate the help.

[SweetieJean]

Are you still asking about 2016,, as per your earlier question?
<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/4142787-profit-calculation-question-urgent">https://ttlc.intuit.co...>

[SweetieJean]

You may need a local professional to help you set this all up correctly, especially since your 2016 return is way overdue. Do you have any employees?

[smturgutalp]

I am in Hurricane Harvey disaster area so i have time till jan 2018. I have a valid extension from irs.
I dont have employees.

[smturgutalp]

i asked questions regarding my previous post as a second opinion.

[Critter · Accepted solution]

1: I enter the total sales receipts (not profit) in Business Income?  

Yes ... enter gross income.

2: I enter the amount i paid for the cars in Cost of Purchases?  

Yes ... this is the cost of goods sold ... follow the tax form & the program interview

3: Cost of purchases include end year inventory?  

Yes... the end of year inventory is taken into consideration in the COGS section

4: Where should i enter the amount i paid for parts? Materials&Supplies?

Yes ... in the COGS section under material & supplies 

5: Where should i enter the amount i paid to body shops? Other Costs to Prepare for Sales? 

Again .. in the COGS section under labor or other costs

6: Or the amount i spend to repair these cars should be under business expenses?  

Again the cost to repair the "inventory" is entered in the COGS as material & supplies or other costs... you really need to sit down with a bookkeeper to get educated in how to track your inventory costs.