Tax Time, Soapmaker 3

Discussion in 'General Business Forum' started by Soapsense, Dec 20, 2016.

Help Support Soapmaking Forum by donating:

  1. Dec 20, 2016 #1

    Soapsense

    Soapsense

    Soapsense

    Well-Known Member

    Joined:
    Jan 18, 2012
    Messages:
    322
    Likes Received:
    107
    I have been using Soapmaker 3, and as many may know they added a COGS equation.
    My question is about the Holdiay gifts I just used for my friends. I created an invoice for purchaser "Personal Use" I added the items I used to the invoice. My question is in the cost, should I put Zero, or the actual cost of each item? I was thinking if say a soap costs me $2.00 to make and I put $2.00 in cost, profit would be zero, but it will add $2.00 to my income? If I add zero it won't add to my income, but what would it do?? Help, Tax challenged....
     
  2. Dec 20, 2016 #2

    The Efficacious Gentleman

    The Efficacious Gentleman

    The Efficacious Gentleman

    Lifetime Supporter

    Joined:
    Nov 19, 2013
    Messages:
    8,929
    Likes Received:
    8,912
    Location:
    Austria
    Put it in as shrinkage. But remember the time factor, too. It cost more than just the ingredients to make the soap
     
  3. Dec 21, 2016 #3

    The Efficacious Gentleman

    The Efficacious Gentleman

    The Efficacious Gentleman

    Lifetime Supporter

    Joined:
    Nov 19, 2013
    Messages:
    8,929
    Likes Received:
    8,912
    Location:
    Austria
    If you do class it as personal use. If you used olive oil from the soaping supplies for cooking your dinner, that's very clear. But giving soaps away is marketing and using them on yourself is quality control
     
    pamielynn and candicec003 like this.

Draft saved Draft deleted

Share This Page

Group Builder