Another tax question.....yes I am a procrastinator!!

[asheebeans]

I started my biz last year Sept. (officially) and am in the middle of finishing up the tax nightmare I caused myself by my horrible record-keeping. I got my inventory done (yay!) and have a question regarding "supplies" for tax purposes. Do I include my molds (soap, candle, etc) in my "supplies"? Just wondering if I had to add their value in with all of my other raw materials. Thanks much!

[Beth-VT]

Molds are part of equipment. You don't sell it, so don't inventory it. Supplies are something that you sell, or goes into something you sell. HTH.

[RobinInOR]

I put those type of things in "Tools" in Quickbooks, and stick it into Office Supplies on my Sched C Expenses section. My accountant said that as long as I stay consistent and always put my tools in the same place, that would be OK.

[asheebeans]

Thanks much!! You should see my mold inventory, it is ridiculous! :embarasse I was wondering how you would depreciate the value of them year after year as they do get worn over time, obviously. Talk about waiting until the last minute! I usually had my taxes done and mailed the day after we got all of our forms in the mail. This year has been an experience to be sure!!! I wish I could start over somehow. I think there is a computer program in my future, because trying to keep track of all this is insane!!! I have two toddlers and two teens, on top of working full time and running this biz too. Every time I look at the stack of tax forms I want to burst into tears!! It'll all be over soon, thank goodness, and I am buying soapmaker, quickbooks, craft biz software or something!!! I am NOT going through this sh## next year! Okay, vent over now......and thanks again Robin and Beth!!