Home Improvement Contractor - Licensed Contractors

tax questions[sched. c]I am a 1st year self-employed painting contractor.what line do i put the cost of paint?

does the paint and materials i paid for and used on jobs an expense on Part II ...line22.. Supplies ,or do i put it on Part III...line38..materials and supplies?

Public Comments

1. Things like paint, dropcloths, brushes would be supplies. Use them in Part II. Part III is for things like labor cost and anything you buy that you resale to the customer. Paint may actually be in this category instead, depending on how you charge the customer. If your labor costs include the cost of paint, then paint is a supply. If you charge extra for the paint depending on what the customer wants, then paint is a Cost of Goods Sold.