schedule c. Inventory vs. supplies


R

Ritchie

I wonder if anybody out there can help me with a tax filing
question.

I started a small (very small) home business in 2002 selling
books on line through ebay and the like. I'm just using a
cash accounting system, and last year I filed a schedule
C-EZ.

This year I looked at things a bit closer and I'm wondering
if I should consider the cost of the books I buy at
yardsales etc. as "inventory". I have absolutely no method
of tracking inventory and no idea what my starting and
ending inventory for 2003 would have been (I had no idea
that I was supposed to keep track of this stuff.)

So this brings me to my 11th hour tax filing and I'm not
sure what to do. Last year I just lumped the cost of all the
books I bought into expeses. I've read something that I can
account for these as "supplies that are not incidental" but
I can't figure out what that means or how I would account
for it that way.

Does anybody have any suggestions for me?

Confused and Clueless....
 
Ad

Advertisements

A

Allan Martin

Ritchie said:
I wonder if anybody out there can help me with a tax filing
question.

I started a small (very small) home business in 2002 selling
books on line through ebay and the like. I'm just using a
cash accounting system, and last year I filed a schedule
C-EZ.

This year I looked at things a bit closer and I'm wondering
if I should consider the cost of the books I buy at
yardsales etc. as "inventory". I have absolutely no method
of tracking inventory and no idea what my starting and
ending inventory for 2003 would have been (I had no idea
that I was supposed to keep track of this stuff.)

So this brings me to my 11th hour tax filing and I'm not
sure what to do. Last year I just lumped the cost of all the
books I bought into expeses. I've read something that I can
account for these as "supplies that are not incidental" but
I can't figure out what that means or how I would account
for it that way.

Does anybody have any suggestions for me?
Clearly the books you purchase for resale are inventory.
 
Ad

Advertisements

S

scott s.

(e-mail address removed) (Ritchie) wrote in
I wonder if anybody out there can help me with a tax filing
question.

I started a small (very small) home business in 2002 selling
books on line through ebay and the like. I'm just using a
cash accounting system, and last year I filed a schedule
C-EZ.

This year I looked at things a bit closer and I'm wondering
if I should consider the cost of the books I buy at
yardsales etc. as "inventory". I have absolutely no method
of tracking inventory and no idea what my starting and
ending inventory for 2003 would have been (I had no idea
that I was supposed to keep track of this stuff.)

Does anybody have any suggestions for me?
Hire an accountant to set up a basic set of books for you?
It does sound like you are in a trading business that buys
merchandise at wholesale for resale. So yes, I would agree
your books are inventory and the cost of the books is
included in cost of goods sold.

scott s.
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Similar Threads

schedule C inventory 3
USA 1120S vs Schedule C 0
Schedule C vs. Other Income 2
USA Schedule A vs. schedule C for business related expenses 4
Depreciation vs. Supplies 4
schedule C 9
Schedule C 1
Schedule C 2

Top