You cannot deduct the products you buy for personal use. You can only deduct the products you actually sell to others or use as samples.
You will enter the total off all of your gross income received from your customers, in addition to anything reported on the 1099-MISC. Then, your Cost of Goods sold will reflect the actual price you paid for the items.
If you only received commission directly from the company, and didn't take money from clients personally (for example, if they purchased only on a website), then you can only report that income.
You will file a Schedule C for the business. The Schedule C will flow onto your individual income tax return (Form 1040) and be netted with other personal income and expenses.
The result for your Gross Receipts on line 1 of your Schedule C for your business should be every dollar you actually received, including all your sales taxes. Then, deduct your Cost of Goods Sold, sales taxes paid, other expenses, etc. on the following screens where the software indicates to put them.
How to get to that area : While inside the software and working on your return, type Schedule C in the Search at the top of the screen (you may see a magnifying glass there). There will be a popup that says Jump to Schedule C. Select that to get to the general area.
- Business Income and Expenses
- select Edit next to your business (if it is there)
- scroll to Business Expenses
Follow through all the areas in the Business section of the
TurboTax software and it will provide you with a lot of assistance. You'll
notice blue links that have more information and details about the particular
sections that will be extremely helpful.