Do we count cash that my wife takes from our personal savings account and uses to buy products that she sells in her new business?

[ltmedic3]

My wife started a business reselling estate items. She gets cash every payday from our account which she uses to purchase items, and pay for her rental space in a co-op store.

[VolvoGirl]

You don’t report that directly.  She can deduct the actual expenses no matter how or from where she paid them.   

If you are a sole proprietor or self employed, you don't account for cash, money or loans you put into the business. The schedule C is all your personal income and expenses in the first place. Doesn't matter what account the money came out of. It is not income or an expense. You just enter the gross income you received and actual expenses you paid. If you paid for something you can take the expense. Doesn't matter how you paid it. You deduct the money you put in to the business by entering the expenses you used it for.