3 Comments for In schedule C, how does one label cost of goods when there is no inventory?
1.
Jss | February 15th, 2011 at 9:18 am
Cost of goods can not be negative unless the seller of goods pays you instead of you paying the seller.
Cost of goods — the amount you paid to purchase the goods.
2.
tro | February 15th, 2011 at 9:50 am
you don’t always have an inventory, ie. I have a lawyer and he has no inventory but he has to pay things like the fees to record the papers with the county, or pay for reports from police depts. etc
and he would not be able to perform his obligations without these reports, so these are a cost of his services(does not always to be labeled ‘cost of goods’)
so whatever it is you do, sell, perform services etc. what does that cost you to be able to do what you do?
3.
ninasgramma | February 15th, 2011 at 10:04 am
If your business activity involves selling merchandise, your cost of goods sold is going to be a positive number.
If you are in a service business and do not have an inventory, you do not complete Part III of Schedule C. Leave Line 4 of Part I “Cost of Goods Sold” blank. Your deductions will be entirely operating expenses as lised in Part II.
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3 Comments for In schedule C, how does one label cost of goods when there is no inventory?
1. Jss | February 15th, 2011 at 9:18 am
Cost of goods can not be negative unless the seller of goods pays you instead of you paying the seller.
Cost of goods — the amount you paid to purchase the goods.
2. tro | February 15th, 2011 at 9:50 am
you don’t always have an inventory, ie. I have a lawyer and he has no inventory but he has to pay things like the fees to record the papers with the county, or pay for reports from police depts. etc
and he would not be able to perform his obligations without these reports, so these are a cost of his services(does not always to be labeled ‘cost of goods’)
so whatever it is you do, sell, perform services etc. what does that cost you to be able to do what you do?
3. ninasgramma | February 15th, 2011 at 10:04 am
If your business activity involves selling merchandise, your cost of goods sold is going to be a positive number.
If you are in a service business and do not have an inventory, you do not complete Part III of Schedule C. Leave Line 4 of Part I “Cost of Goods Sold” blank. Your deductions will be entirely operating expenses as lised in Part II.
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