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Where is everyone putting paint / material on their tax return? I get mixed messages between business expense and cost of goods sold when I google it.
 

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Where is everyone putting paint / material on their tax return? I get mixed messages between business expense and cost of goods sold when I google it.
Would you go to an accounting/CPA forum and ask them for painting advice? First rule of trying to glean info on the internet is to consider the source. Consult with an accountant or CPA. Many offer the first 30-60 min consultation for free. Even if you had to pay for an hour, the money you could save on not just this question, but many more you may not even know to ask, could save you 10x what you paid for 1hr of professional advice.
 

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First, just pull up the tax forms online. 1040 for Federal return, then Schedule 1 for business. Just look at them and you will answer your own questions.
 

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Both are 50000 series chart of account items. I prefer to list my paint under the heading '51400-Job Materials Purchased' to keep it separated from other Cost of Goods Sold items for job costing purchases. But for tax purposes, both are deducted from total revenue to calculate taxable income.

What ever system you're using to track income and expenses, the more sub categories (and the better organized you are at sending the correct bill to the right category) the better you will be able to track your job performance.

But Seltzer Painting hit the nail on the head. You should really have a professional you work with. Having a second set of eyes is a great way to to avoid costly fees and big unexpected tax bills.
 

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Most likely line 38 (cost of goods sold) in part 3 of your schedule C, but it really depends on how you have your business set up. Best to see an accountant and not seek tax advice online....but more than likely, line 38
 

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Yep, accounting or law questions, seek out the professionals. But if you want brain surgery or rocket engineering advice, you've come to the right place.
 
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