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April 9, 2022

"Supplies" that are part of Costs of Goods Sold (i.e., used in the creation of product) get reported in Part III of Schedule C.

 

Otherwise Supplies go under "Supplies". Please don't itemize $24,000 worth of supplies on your tax return, but you personally must keep complete records so that if the IRS asks for an accounting of your Supplies, you will be able to answer them in detail.

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