I purchase batting and thread to use in my quilts for others. I also buy fabric to use in quilt backs and other quilts made for samples, adverstising, etc. I do not know whether to put these in my schedule c as supplies or list them under raw materials.
You'll need to sign in or create an account to connect with an expert.
Raw materials used to produce an item for sale would be part of inventory and be entered in Cost of Goods Sold. They are treated differently from a pen or a ream of paper which would be an expense.
Follow the instructions below to enter "Cost of Goods Sold":
1. Click on the Business tab and then click on the blue Continue button.
2. That will take you a screen that asks How do you want to work on your business income? Select I'll choose what I work on.
3. On the Let's gather your business info screen you'll see Business Income and Expenses. Click on either Update or Start, to the right.
4. The next screen will be Here's the business info we have so far. If you have been here before you can just select Edit.
5. On the next screen Inventory/Cost of Goods Sold is the third one down. Select Update.
TurboTax Calculates Cost of Goods Sold as follows:
= Cost of Goods Sold
Raw materials used to produce an item for sale would be part of inventory and be entered in Cost of Goods Sold. They are treated differently from a pen or a ream of paper which would be an expense.
Follow the instructions below to enter "Cost of Goods Sold":
1. Click on the Business tab and then click on the blue Continue button.
2. That will take you a screen that asks How do you want to work on your business income? Select I'll choose what I work on.
3. On the Let's gather your business info screen you'll see Business Income and Expenses. Click on either Update or Start, to the right.
4. The next screen will be Here's the business info we have so far. If you have been here before you can just select Edit.
5. On the next screen Inventory/Cost of Goods Sold is the third one down. Select Update.
TurboTax Calculates Cost of Goods Sold as follows:
= Cost of Goods Sold
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
tnsimone21
New Member
cnkruga1
New Member
roonkr22
New Member
in Education
ldedual
New Member
BF85
Level 1