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Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 6172
Experience:  Extensive Experience with Tax, Financial & Estate Issues
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My name is ***** ***** and I am self-employed as a handyman

Customer Question

My name is ***** ***** and I am self-employed as a handyman service. I repair and remodel homes. The supplies I purchase are charged within the totals due to customers. Is this expense deducted under Schedule C Part II line 22 Supplies as opposed to Part III Cost of Goods materials and supplies?
JA: Thanks. Can you give me any more details about your issue?
Customer: My name is ***** ***** and I am self-employed as a handyman service. I repair and remodel homes. The supplies I purchase are charged within the totals due to customers. Is this expense deducted under Schedule C Part II line 22 Supplies as opposed to Part III Cost of Goods materials and supplies?
JA: OK got it. Last thing — Tax Professionals generally expect a deposit of about $32 to help with your type of question (you only pay if satisfied). Now I'm going to take you to a page to place a secure deposit with JustAnswer. Don't worry, this chat is saved. After that, we will finish helping you.
Submitted: 9 months ago.
Category: Tax
Expert:  Stephen G. replied 9 months ago.

Actually, it doesn't matter as long as you get a tax deduction for the expenditures.

If I were you I would include the materials in the Cost of Goods Materials & Supplies as they are billed to customers by figuring them in to what you are charging.

The Supplies category, line 22, would be used for general supplies that you aren't directly billing to customers; more along the lines of "overhead type" expenditures; perhaps small tools if you don't list them separately, paper supplies, possibly sandpaper, things such as that; often, on a major renovation a contractor will set up a separate account with his supplier & everything that is purchased for that job is re-billed to the customer, whereas the same type of expenditure may be classified as "supplies" when the purchase is not for any particular job.

So, the bot***** *****ne remains, as long as you are taking a tax deduction somewhere, that's what is most important.

Expert:  Stephen G. replied 9 months ago.

Just checking in.............................

I see that you were able to review my response, but I don't see where you have asked any follow-up questions.

Do you have any additional questions?

If not, please remember to rate my response, as that is the only way we receive credit for our work.

Steve G.