Part III of Schedule C black question

Forum|Forum|3 years ago
February 12, 2023
1 reply
0 views

On both turbo tax and free tax USA I am noticing the same thing. This is my first time filing taxes, and I started my business in 2022 as an SMLLC. I sold on Etsy and Smugmug- a photo-selling platform. I am using the cash method, and in part II, line 22, I have my supply cost listed along with De Minimis Safe Harbor Election. I made about $5800 this year with my business. After filling everything out, my Part III Cost of Goods Sold is blank. Do I not need to worry about listing anything, such as inventory or Materials and supplies?

Thank you for the help again.

Not A Product Question

Best answer by MAK70

Yes, you will enter as Supplies. @ZachV

MAK70

No, if you are expensing the inventory because you qualify, you do not complete the Cost of Goods section. (Obviously you need to keep records of inventory, but you do not have to provide the information for tax purposes.)

ZachVAuthor

Okay, thank you. So just to be clear, I ordered the calendars from a supplier in 2022, and the calendars arrived and were immediately ready for resale. I listed them on Etsy and sold and shipped all of them. So I can deduct the cost of the calendars on Part 2 line 22 supplies and not have to put it on part 3 line 36? If so, is supplies the right area for the calendars since there a completed item or would they go under Other Expenses. Thank again