Paul Thomas, CPA wrote:

- quote -


- quote -

Or even if you don't have a profit, you can use the Section
179 deduction to offset other earned income.

-Mark Bole

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"Kathrin" <markatker[at]hotmail.com> wrote:

- quote -

you can deduct items that are directly related to the
generation of income. therefore, if your garden is personal
pleasure and you sometimes sell flowers, that's a personal
expense and non-deductible, however, if you have a garden
dedicated to growing flowers for sale, then any and all
expenses directly incurred in maintaining that garden are
deductible. this assumes you're making a profit, if you're
operating consistently at losses then another set of rules
called the Hobby Loss rules kick in to limit the amount of
deductions to the income generated.

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- quote -

To the extent it's used for the bulbs you sell (not for the
rest of your garden), it's "Cost of Goods Sold". Maybe some
of your water bill is, too.

Seth

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One more question. I sell mostly clothes all year, only in
spring I sell a bunch of flower bulbs (only one kind that
grows well in my yard). Can I deduct fertilizer or any other
garden items?

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One follow up question to Paul Thomas. It seems like they
mean the shipping cost for material that is shipped to the
seller, because they say 'freight in on materials'. Here is
how they word it:

Enter any other costs incurred in a manufacturing process
such as shipping containers, freight in on materials and
supplies, and overhead expenses for rent, light, heat, etc.
that are directly related to the manufacturing process.

Are you sure I can use this for freight to the customer?

Thanks

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"Kathrin" <markatker[at]hotmail.com> wrote

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Shipping of your product is a "cost of goods" sold item.

- quote -

Sure, or under other expenses as "ebay and paypal fees".

- quote -

I would put them down as assets and take depreciation on
them. If you have a profit this year, you can take Section
179 and capture the full cost on this years return.

--
Paul Thomas, CPA
paulthomascpapc[at]bellsouth.net

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Kathrin wrote:

- quote -

Either one works fine. If you use Other, be sure and
describe in Part V.

- quote -

Works for me.

- quote -

Those are depreciable assets (or you can Sec 179 expense
them).

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Selling on ebay and not sure where to put put some of my small
business expenses. I could not find a categorie that would
make sense for the shipping cost of items to the customer, so
I put them in Other Expenses. Or is that an office expense?

How about ebay and paypal fees - Commissions and fees?

One more question. I had to buy a digital camera (about $350)
to take pictures for ebay selling and a mannequin (about $200),
my only big expenses. Is that an office expense, supplies or
do they actually count as assets?

Thank you

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