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tclawson
New Member

How do I classify the cost of the services of a video transfer lab?

I collect VHS tapes, film etc. from my customers, then send the tapes/film to a lab (not owned by me, another company) to transfer to a digital file format. They provide me with digital files and a DVD. I deliver the original media collected from the customer, along with the digital files and DVD, add my markup (fee) + sales tax. I pay the lab when I pick up the files/DVDs. Each job is custom, so I don't maintain an inventory. How do I account for the service the lab provides? Is it materials/cost of goods, it it an expense, is it supplies? How do I designate the cost of the lab?

1 Best answer

Accepted Solutions
AnnetteB
Intuit Alumni

How do I classify the cost of the services of a video transfer lab?

You could classify the cost of the lab as a miscellaneous business expense in the section that will allow you to type a short description along with the amount.  That way you will be able to keep track of where it was reported when it is time to do your return for the next year.  The description should carry over. 

Use the following steps:

  • On the top row of the TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner)

  • This opens a box where you can type in “schedule c” (be sure to enter exactly as shown here) and click the magnifying glass (or for CD/downloaded TurboTax, click Find)

  • The search results will give you an option to “Jump to schedule c

  • Click on the blue “Jump to schedule c” link

  • Click Edit beside your business name

  • Scroll to the Business Expenses section, click Update or Edit beside Other Common Business Expenses

  • Scroll to the bottom of the screen and click Update or Edit beside Other Miscellaneous Expenses

  • This will allow you to enter a short description and an amount for the expenses you incurred


View solution in original post

1 Reply
AnnetteB
Intuit Alumni

How do I classify the cost of the services of a video transfer lab?

You could classify the cost of the lab as a miscellaneous business expense in the section that will allow you to type a short description along with the amount.  That way you will be able to keep track of where it was reported when it is time to do your return for the next year.  The description should carry over. 

Use the following steps:

  • On the top row of the TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner)

  • This opens a box where you can type in “schedule c” (be sure to enter exactly as shown here) and click the magnifying glass (or for CD/downloaded TurboTax, click Find)

  • The search results will give you an option to “Jump to schedule c

  • Click on the blue “Jump to schedule c” link

  • Click Edit beside your business name

  • Scroll to the Business Expenses section, click Update or Edit beside Other Common Business Expenses

  • Scroll to the bottom of the screen and click Update or Edit beside Other Miscellaneous Expenses

  • This will allow you to enter a short description and an amount for the expenses you incurred


View solution in original post

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