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I own an interior design and renovation company. When filing my taxes using Turbotax, under what category would I record the cost of project materials?

For example, I may charge say, $30,000 to renovate a bathroom. $15,000 of that is materials, where do I record the cost of project materials as a business expense?
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1 Reply
MinhT1
Employee Tax Expert

I own an interior design and renovation company. When filing my taxes using Turbotax, under what category would I record the cost of project materials?

Materials that you use in your client projects can be categorized as Supplies.

 

However, if you buy these materials in advance and stock them for several projects, they should be categorized as Purchases and any materials remaining in stock at year end counted as Inventory.

 

 

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