Where do I deduct subscription software I resell, i.e. Cost of Goods? For instance, I purchase/manage things like Carbonite for various customers and then bill them.
Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
TurboTax has you covered during Covid. Get the latest second stimulus info here.
cancel
Showing results for 
Search instead for 
Did you mean: 
New Member

Where do I deduct subscription software I resell, i.e. Cost of Goods? For instance, I purchase/manage things like Carbonite for various customers and then bill them.

Where do I deduct subscription software I resell, i.e. Cost of Goods?  For instance, I purchase/manage things like Carbonite for various customers and then bill them.


1 Reply
Employee Tax Expert

Where do I deduct subscription software I resell, i.e. Cost of Goods? For instance, I purchase/manage things like Carbonite for various customers and then bill them.

Cost of Goods is probably the best selection.  This is the preferred place to report inventory; in other words:  the purchases you make for re-sale.  This way, the expense for purchases that you haven't sold by the end of the year are suspended until they are sold.  Listing the items as "supplies" is not inaccurate, but cost of goods is definitely more accurate reporting.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Dynamic Ads
v
Privacy Settings