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New Member
posted Apr 13, 2024 5:06:52 PM

HELP were do I put cost of materials

My husband is a electrician were do I put the cost of materials it isnt inventory 

HELP

@everyone

0 3 1363
3 Replies
Returning Member
Apr 13, 2024 5:15:45 PM

On page 2 of your Schedule C, under Cost of Goods Sold, Line 36 is called Purchases.  It is for all the things you buy for re-sale but you don't track it as Inventory.  Or, depending on how you view those items, you could enter them on line 38 as Materials and Supplies. 

Level 15
Apr 13, 2024 5:20:45 PM

Yes put the materials under Supplies.  

Level 15
Apr 13, 2024 5:21:18 PM

Supplies are the stuff used up in getting the work done or stuff turned over to the client. COGS is inventory. Stuff on shelves sold to buyers i.e. Corn Flakes in a supermarket.