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Level 1
posted Feb 14, 2021 4:59:59 AM

Should costs for building materials purchased by the builder (myself) used for construction jobs be listed under "miscellaneous expenses?"

In doing so, federal tax liability becomes negative and I'm getting money back despite $70,000 plus in income.

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3 Replies
Level 15
Feb 14, 2021 10:27:44 AM

Line 22 of Schedule C, Supplies, would be a more appropriate place for this entry.  Really, the important thing isn’t so much where you report it, as that you do report it.

You should make sure that you’re not double-counting certain expenses. 

Level 1
Feb 15, 2021 5:46:07 PM

I read somewhere that materials used in the building process are not deductible....only tools.  Are there certain building material expenses that I should omit?  Thanks. 

Expert Alumni
Feb 15, 2021 7:27:12 PM

Building materials used for the job would be supplies. See Publication 535 (2020), Business Expenses | Internal ...for the complete listing of what expenses are allowed.

 

See Self-Employed Individuals Tax Center for complete details.