How do I deduct construction materials used for my jobs (lumber, concrete etc)? I can't find a place anywhere to input this info. I am self employed.

Forum|Forum|3 years ago
April 20, 2022
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I have searched "cost of goods and services", "other expenses" and everything else suggested online, but turbotax has nothing.

Raman1

Enter this as "Cost of Goods" in the section after you enter your income on the Business Statement - T2125.

In TurboTax Self-Employed, you do not actually enter the Cost of Goods Sold into the program. Rather, you enter your beginning inventory, purchases, and ending inventory and the program will calculate the COGS for you.

Here are the few steps you can follow, to figure out the cost of goods sold in self-employed,

1. Go to Inventory/Cost of Goods Sold and click Start or Update.
2. Say Yes, I have inventory to report.
3. Answer the question about how you value your inventory.
4. Enter the inventory at the beginning and end of the year.
5. Enter on the next screen the costs that you had for the year in purchasing or making your inventory.
The cost of goods sold is figured automatically and put on the second page of your Schedule C.  It is equal to Purchases for the year + beginning inventory – ending inventory.
That number goes to page 1 of your Schedule C, on line 4.  That gets subtracted from line 1, gross receipts, to get your gross profit, which is line 5 of your Schedule C.

Thank you for choosing TurboTax.

cwolves2uAuthor

I can’t find the inventory/cost of goods sold section. When I search this it doesn’t exist. The only sections I have are self employment intro, business or professional activities, farming activities,fishing activities, and self employment summary. When I go to the summary it says $0 under cost of goods sold, but I can’t find anywhere to add the information.

Raman1

You can’t use the Find tool to search for the Inventory section, as it’s inside the Self-Employment part of the interview.

If you have already entered your business information, you can go to the Summary page, click on Edit next to your business, and then click on “Income and inventory”. Continue through the inventory pages until you get to the “Did you sell products that you bought or manufactured?” page, where you should answer “Yes”. Then the Inventory/Cost Of Goods boxes will appear.

If you are still not able to resolve your issue, please contact our phone support team at 1-888-829-8608

Thank you for choosing TurboTax.