tax question

[Jon Page]

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?

Small items are part and parcel of business and need not be invoiced. 
Higher priced
items are subject to sales tax or not, depending on who you are doing 
the work for.
For instance, I list the action frame felt on the invoice but not the 
cardboard/paper punchings. I figure they are covered in the mark-up 
on the cloth.

I have two sales categories in Quicken: sales, taxable and sales, non-taxable.

All supplies are entered as business expense and when sold for a job 
are entered
into a sales category and taxed appropriately. Parts purchased for a 
piano which
is to be sold are included with the retail price and covered by the 
ensuing sales tax.
-- 

Regards,

Jon Page
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