How do I enter in expenses for a product I purchas...
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kbryant0806
New Member

How do I enter in expenses for a product I purchased and then sold as an independent contractor? Is the purchase and then resale of that product a deduction?

I sell chips and baked goods as an independent contractor for Bimbo Foods. I buy the merchandise and then sell it to local convenient stores.
2 Replies
BillM223
Employee Tax Expert

How do I enter in expenses for a product I purchased and then sold as an independent contractor? Is the purchase and then resale of that product a deduction?

These items are called inventory, and you need to report the value of inventory at the beginning of the year and again at the end of the year.

 

This is part of the calculation of Cost of Goods sold on Schedule C.

 

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fanfare
Level 15

How do I enter in expenses for a product I purchased and then sold as an independent contractor? Is the purchase and then resale of that product a deduction?

I doubt you have any inventory at the end of the year; it would be pretty tasteless.

Anyway merchandise  cost is "cost of goods sold" and subtracts from your gross revenue.

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