Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

My name is ***** ***** and I am self-employed as a handyman…

Customer Question
My name is *****...

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?

Accountant's Assistant: Thanks. Can you give me any more details about your issue?

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?

Submitted: 2 years ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 23 minutes by:
2/15/2016
Tax Professional: Stephen G., Sr Income Tax Expert replied 2 years ago
Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 7,469
Experience: Extensive Experience with Tax, Financial & Estate Issues
Verified

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.

Ask Your Own Tax Question
Tax Professional: Stephen G., Sr Income Tax Expert replied 2 years 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.

Ask Your Own Tax Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Stephen G. Your Own Question
Stephen G.
Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 7,469
7,469 Satisfied Customers
Experience: Extensive Experience with Tax, Financial & Estate Issues

Stephen G. is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,512 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,569 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
For a rental property, where is the At-Risk dollar amount
for a rental property, where is the At-Risk dollar amount entered so that it is taken into account for the calculation of allowable passive loss from the rental property? … read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
1,381 satisfied customers
I have some questions on where to put certain expenses on my
I have some questions on where to put certain expenses on my Schedule C.... 1. Fees I've incurred on sales through PayPal & Etsy. 2. Costs of product inventory.… read more
ABC Accounting Group
ABC Accounting Group
Bachelor\u0027s Degree
848 satisfied customers
I am an independent consultant for Pure Romance, a direct
Second opinion] I am an independent consultant for Pure Romance, a direct sales company I did several movie vendor events, where my clients would purchase tickets from me and I would pay the theater a… read more
James Daloisio
James Daloisio
Attorney
Doctoral Degree
559 satisfied customers
, I am running my business as an LLC. I don't maintain
Hello, I am running my business as an LLC. I don't maintain any inventory. I am not technically a contractor because all of my jobs are done on a time and materials basis. I do odd jobs and remodeling… read more
abci168
abci168
Principal
27 satisfied customers
If I made 80,000 dollars on a remodel but spent 25,000 in materials
If I made 80,000 dollars on a remodel but spent 25,000 in materials do I report that 25000… read more
taxmanrog
taxmanrog
Master\u0027s Degree
1,042 satisfied customers
My business is being audited for sales tax. We have paid every dime for last 4 years. The
My business is being audited for sales tax. We have paid every dime for last 4 years. There is nothing she can find where we didn't pay sales tax on. We did an add on to the building in 2012 now she w… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I remodeled my home a few months ago. I hire a local handyman
I remodeled my home a few months ago. I hire a local handyman to do the repairs with this crew. I would pay him for the stuff he was doing as he did it. To finish the final part of the project I gave … read more
Megan C
Megan C
Certified Public Accountant (CPA)
Master's Degree
8,655 satisfied customers
Texas Sales Tax - my business is going through a sales tax
Texas Sales Tax - my business is going through a sales tax audit and I thought I was doing everything correctly but I want to doublecheck my position. I'm most of the time a subcontractor and invoice … read more
fastfile
fastfile
Tax Advisor
Master's Degree
550 satisfied customers
I have a handyman business I started last year in the fall.
I have a handyman business I started last year in the fall. Would I use cos of goods sold or how do I deduct materials and supplies for jobs I did… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
I bought and sold real estate in 2011. In figuring out various
I bought and sold real estate in 2011. In figuring out various expenses on my 1040 Schedule C, I'm trying to figure out if the properties would be considered 'inventory'. What does section III of the1… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Hello, I was unemployed during 2008, and took care of my elderly
Hello, I was unemployed during 2008, and took care of my elderly parents in exchange for room and board. I did some handyman jobs for people and earned about 8000.00 I want to pay taxes on it but i do… read more
Dave Z
Dave Z
Self-Employed
Bachelor
418 satisfied customers
Retired and do auto mechanic work as a side job. I do not
Retired and do auto mechanic work as a side job. I do not keep an inventory, I just order the part needed to do the job at the time I need it. In that case, would the parts purchased go on schedule C … read more
Lou
Lou
High School or GED
272 satisfied customers
Filing Schedule C. Can I put all material costs in Part V?
Schedule C Question I'm a Building Contractor and file a Schedule C. I assume that the total moneys received from all my jobs, labor and materials, goes on line 1. Is it appropriate to put the costs o… read more
Ed Johnson
Ed Johnson
Senior HR Consultant and Business Devlpm
Bachelor's Degree
6,994 satisfied customers
I have three questions about Schedule C. If you buy ...
I have three questions about Schedule C. ·If you buy equipment, freight-in is a part of the acquisition cost. But what about freight-in for merchandise and materials? IRS Pub. 334 says Freight-in shou… read more
Wendy Reed
Wendy Reed
Master Tax Advisor Enrolled Agent
Master's Degree
60 satisfied customers
I have a vending bussiness and I am not sure where to ...
Greetings, Presumably you either use the Cost of Goods Sold section of Schedule C and list your purchases in Part III on line 36 or you list the purchases as an expense in Part II. When you have outda… read more
jgordosea
jgordosea
Enrolled Agent
Bachelor's Degree
2,885 satisfied customers
Is there sales tax on labor in the state of Florida
had work done on our telephone entry system and the vendor charged a 6% sales tax to the Association I represent.… read more
jgordosea
jgordosea
Enrolled Agent
Bachelor's Degree
2,885 satisfied customers
I make jewelry. Is my investment in the stones, ...
I make jewelry. Is my investment in the stones, beads, findings and other materials that I inventory to make pieces of jewelry tax deductible?… read more
Wendy Reed
Wendy Reed
Master Tax Advisor Enrolled Agent
Master's Degree
60 satisfied customers
Schedule C expenses, materials used for construction
I am a construction contractor, self-employed. Where on Schedule C do I list the cost of all the raw materials that I purchased for use in the construction projects I have done. I was thinking that I … read more
Sandi Hargrove, SkyHawks
Sandi Hargrove, SkyHawks
Master Tax Pro and Enrolled Agent
Master Degree
1,254 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x