This is my first year filing taxes for actually selling a product, this is a sole proprietorship.
I am filling out schedule C(Cost of Goods Sold) section.
I have a product that is manufactured by my supplier, shipped to me, then stored and shipped to the customer from my location.
I also order shipping tubes that I package this product up in when shipping. I ordered 500 shipping tubes last year and used 350 of them.
Do these shipping tubes go under normal expenses or are they are part of Cost of Goods Sold? If they go under normal expenses do I only take the deduction on the 350 that were used or the full 500 that were purchased.
I am filling out schedule C(Cost of Goods Sold) section.
I have a product that is manufactured by my supplier, shipped to me, then stored and shipped to the customer from my location.
I also order shipping tubes that I package this product up in when shipping. I ordered 500 shipping tubes last year and used 350 of them.
Do these shipping tubes go under normal expenses or are they are part of Cost of Goods Sold? If they go under normal expenses do I only take the deduction on the 350 that were used or the full 500 that were purchased.