Forum Moderators: LifeinAsia
For those of you who ship goods that you sell thru your website, which category do you record your postage expenses in on schedule C? Is that considered "office expense"? Or would it go in the "other expenses" category?
Do you put mailing supplies (boxes, envelopes, labels etc) in the "supplies" category? What about printer cartridges - are those considered an "office expense" or "supplies"?
When I filed my fictitious name with my state, would the cost of that filing be considered "licenses" or "professional expenses"? Or maybe even "fees & commissions"?
Hehe, sorry to ask so many questions - in the end I guess it doesn't matter how I break these down because they will all be deducted just the same, but I'd like to make sure I'm doing my bookkeeping as correctly as possible!
Thanks!
Postage/shipping would be cost of goods sold on Part III.
I put my DBA under licenses. But that's just me.
The family accoutant told me that it doesn't matter as much where you categorize the expeses as much as you're honest in reporting them. Especially if you're using cash accounting.