Tax questions on inventory

[Adrocket]

Hey, I'm trying to figure out how to do the taxes for my screen printing, and am wondering if any of the other designers/printers have figured this out.

I'm putting down the business as an inventory business because, well, I have inventory.

But I'm pretty confused about how to figure inventory when I have to factor in raw materials, value of finished goods (cost to produce or retail???), and then I have to figure out what the value of all this was at the beginning of the year as opposed to the end of the year.

I mean, do I have to know how much of that quart of Speedball red I went through this year and factor that in?

Seems to me anything beyond "this is how much I invested in equipment, supplies, commisions, etc. This is how much I took in in sales." should give the IRS everything they need, but since these regs seem tailored to large-scale manufacturing, I'm at a loss as to how to proceed.

Any advice is greatly appreciated.

-Adam
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Adam J Carriuolo Fine Art Silkscreen Prints

[Andymac]

we just do an estimated amount. keep it low.

don`t fret the half cans. Raw materials are the price you pay. Best to consider everything `raw materials`unless you have thousands in stock. I don`t value any finished posters, that`s more for a store.

do you have an acountant? better to ask them than some GP nerds

[Grzeca]

Originally Posted by Andymac

do you have an acountant? better to ask them than some GP nerds

Ding ding ding!

[Andymac]

bang a gong

[Adrocket]

Thanks for the advice guys.

I think the most important questions were answered - the value of finished goods should be calculated in terms of its cost to me in raw materials, not what I am charging for my posters retail.

And I shouldn't get too fine about my finished goods and raw materials estimates.

Essentially the value of your inventory is the value of the materials that end up in your finished product, both raw and finished. For a flatstock printer that is simply the value of the ink and substrate. Does that sound right?

At least that's what I'm choosing to believe!

[Zach Hobbs]

you realize your taking advice from a Canadian right?

I notice you're in BOSTON.

[Adrocket]

Originally Posted by Zach Hobbs

you realize your taking advice from a Canadian right?

I notice you're in BOSTON.

Yes, but it sounded so reasonable.

[john_e_warner]

hide as much as you can from the man cause taxes is a scam yo!

i'll take my gold record now