<HTML><HEAD> <META charset=US-ASCII http-equiv=Content-Type content="text/html; charset=US-ASCII"> <META content="MSHTML 6.00.2800.1106" name=GENERATOR></HEAD> <BODY style="FONT-SIZE: 10pt; FONT-FAMILY: Arial; BACKGROUND-COLOR: #ffffff"> <DIV> <DIV>In a message dated 2/27/2007 9:34:56 PM Eastern Standard Time, anrebe@sbcglobal.net writes:</DIV> <BLOCKQUOTE style="PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BORDER-LEFT: blue 2px solid"><FONT face=Arial>Ed<BR>On schedule C you have a line for supplies, those <BR>kinds of items you don't individually sell to <BR>customers.  This is deducted from you gross <BR>income at 100%.  Now if you are selling specific <BR>items you do that COGS in a different area.  Your <BR>supplies fee is income, your supplies expense offsets it.<BR><BR>Your Advice May Vary ( I don't claim to be an <BR>certified expert, but it does seem to fit the instructions)<BR>Andrew</FONT></BLOCKQUOTE></DIV> <DIV>Greetings,</DIV> <DIV> </DIV> <DIV>      Yes. I totally agree. After spending hours reading the instruction booklets, this way looks to be appropriate and what they are asking for. Its how I;ve been doing it.</DIV> <DIV> </DIV> <DIV>Julia </DIV> <DIV>Reading, PA</DIV><BR><BR><BR><HR style="MARGIN-TOP: 10px">AOL now offers free email to everyone. Find out more about what's free from AOL at <A title="http://pr.atwola.com/promoclk/1615326657x4311227241x4298082137/aol?redir=http://www.aol.com" href="http://pr.atwola.com/promoclk/1615326657x4311227241x4298082137/aol?redir=http%3A%2F%2Fwww%2Eaol%2Ecom" target="_blank"><B>AOL.com</B></A>.</BODY></HTML><BR><BR><BR>**************************************<BR> AOL now offers free email to everyone. Find out more about what's free from AOL at http://www.aol.com.