Question

Are the expenses I incurred for making the clothing for my clothing line startup considered "Supplies"?

Forum|Forum|6 years ago
March 9, 2020
1 reply
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This would include paying the seamstress, fabric, notions, labels that go on the clothing, sewing items, and clothing bought to use with modeling

TurboTax Self Employed Online

ColeenD3

They could be. You can also choose to keep an inventory although the supply route is easier.

If you use cash method and your total average income for the last 3 years was less than $1,000,000 per year, you don't need to use the cost of goods sold section at all.

Instead, you can just write off your merchandise under supplies or miscellaneous expenses when you purchase it. In this case, your merchandise purchase in 2019 would be fully written off then as a business expense.