<!doctype html public "-//W3C//DTD W3 HTML//EN"> <html><head><style type="text/css"></style><title>tax question</title></head><body> <blockquote><font face="Arial" color="#000000">How do you do your taxes in regard to the materials used when servicing</font></blockquote> <blockquote><font face="Arial" color="#000000">pianos.</font></blockquote> <blockquote><font face="Arial" color="#000000">For example, glues, tapes and paper puchings. Are these things deducted (in</font></blockquote> <blockquote><font face="Arial" color="#000000">that they are operating expenses)? Or are they claimed as parts sold (for</font></blockquote> <blockquote><font face="Arial" color="#000000">example, when you regulate a piano your client has essentially bought the</font></blockquote> <blockquote><font face="Arial" color="#000000">punchings used to level the keys)? Deducted vs claimed.....hmmm?</font></blockquote> <blockquote><font face="Arial" color="#000000"><br></font></blockquote> <blockquote><font face="Arial" color="#000000">When I charge a client for a regulation (including pre-regualation repairs)</font></blockquote> <blockquote><font face="Arial" color="#000000">I add a shop supplies fee, somewhere around $10-15. How do I account for</font></blockquote> <blockquote><font face="Arial" color="#000000">this when filing my taxes?</font></blockquote> <div><br></div> <div>Small items are part and parcel of business and need not be invoiced. Higher priced</div> <div>items are subject to sales tax or not, depending on who you are doing the work for.</div> <div>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.</div> <div><br></div> <div>I have two sales categories in Quicken: sales, taxable and sales, non-taxable.</div> <div><br></div> <div>All supplies are entered as business expense and when sold for a job are entered</div> <div>into a sales category and taxed appropriately. Parts purchased for a piano which</div> <div>is to be sold are included with the retail price and covered by the ensuing sales tax.</div> <x-sigsep><pre>-- </pre></x-sigsep> <div><br> Regards,<br> <br> Jon Page</div> </body> </html>