Brad Sondahl on fri 5 feb 99
Where on the 1040 does one keep track of nonreimbursed shipping
expenses, like UPS, (which I occasionally do for customers), and costs
of freight for clay shipments. My instincts tell me they are part of the
"cost of goods sold" section, probably "other costs." Would this be
where they both would go? Thanks!
--
Brad Sondahl
http://www.camasnet.com/~asondahl/bradindex.html
Sondahl homepage http://www.camasnet.com/~asondahl
Original literature, music, pottery, and art
Marvin Klotz on sat 6 feb 99
At 07:54 AM 2/5/99 EST, you wrote:
>----------------------------Original message----------------------------
>Where on the 1040 does one keep track of nonreimbursed shipping
>expenses, like UPS, (which I occasionally do for customers), and costs
>of freight for clay shipments. My instincts tell me they are part of the
>"cost of goods sold" section, probably "other costs." Would this be
>where they both would go? Thanks!
>
>--
Presumably, you include a Schedule C in your tax return (sole
proprietorship) where you declare your income and deduct your expenses.
Just create a line for Postage/Shipping in the "Other expenses" section of
the Schedule and deduct the expense there. Certainly that's the way to deal
with the cost of shipping stuff out. You might simply include the freight
costs with the clay costs wherever you take that deduction (Supplies?).
--Marvin Klotz, Enrolled Agent
Sue Leabu on mon 8 feb 99
>----------------------------Original message----------------------------
>Where on the 1040 does one keep track of nonreimbursed shipping
>expenses, like UPS, (which I occasionally do for customers), and costs
>of freight for clay shipments. My instincts tell me they are part of the
>"cost of goods sold" section, probably "other costs." Would this be
>where they both would go? Thanks!
The cost of freight and/or shipping on supplies you buy is included in the
cost of the supply in the Cost of Goods Sold. Example: Clay costs $100,
freight charge is $10, the cost of the clay is $110. The cost of shipping to
customers is different and does not go there. Include it in "other expenses"
separate from costs of goods sold. Hope that helps! If you need further
clarification, feel free to email. I have 14 years of bookkeeping and
accounting experience.
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