tax question

[Mike Spalding]

Ed,

Here's a link to the Schedule C instructions at irs.gov:
http://www.irs.gov/pub/irs-pdf/i1040sc.pdf

Read the paragraph about line 22 production supplies on pg 5 of the 
instructions, and on pg 7 regarding cost of goods sold and inventory 
accounting.

I usually list punchings and glue as supplies; and DamppChasers, hammer 
sets, pinblock blanks etc. as COGS in the year that they are purchased.

Mike

ed miller wrote:
> Hello,
>
> How do you do your taxes in regard to the materials used when 
> servicing pianos.
>
> For example, glues, tapes and paper puchings. Are these things 
> deducted (in that they are operating expenses)? Or are they claimed as 
> parts sold (for example, when you regulate a piano your client has 
> essentially bought the punchings used to level the keys)? Deducted vs 
> claimed.....hmmm?
>
> When I charge a client for a regulation (including pre-regualation 
> repairs) I add a shop supplies fee, somewhere around $10-15. How do I 
> account for this when filing my taxes?
>
> Thanks,
> Ed
>
> _________________________________________________________________
> Win a Zune™—make MSN® your homepage for your chance to win! 
> http://homepage.msn.com/zune?icid=hmetagline
>
>