Booking materials used for goods sold?

LBeck

My husband is a photographer. Usually, his expenses are equipment and supplies. (He typically will shoot photos for a business and then transfer them digitally. The customer pays him for his shooting time and some basic editing.) However, he recently had a show where he sold some of his photos. How do I categorize the expenses that went into the photos beforehand, e.g. frames, framing costs, printing, etc.?

Scooterlam

Image sales are booked to a category with the "Tax Reporting" line assigned to Schedule C:Gross Receipts or Sales.  And the expenses necessary to produce the photo sale revenue booked to a category with the "Tax Reporting" line assigned to one or more of the Schedule C "CoGs" related tax lines.  See image.



You assign a tax line to the category (using edit category in the Category List) to report on those framing, printing, etc costs in your business and tax reports.

Scooterlam

Image sales are booked to a category with the "Tax Reporting" line assigned to Schedule C:Gross Receipts or Sales.  And the expenses necessary to produce the photo sale revenue booked to a category with the "Tax Reporting" line assigned to one or more of the Schedule C "CoGs" related tax lines.  See image.



You assign a tax line to the category (using edit category in the Category List) to report on those framing, printing, etc costs in your business and tax reports.

LBeck

That's what I was thinking. Thanks for the confirmation!