Thread: Profit question

Results 1 to 4 of 4
  1. Collapse Details
    Profit question
    I'm looking to start a small handy man service. My question is, say I bill someone for $500 but I spent $100 in materials. So, I only profited $400 out of the total $500 billed. How do I handle this come tax time? From the copy of the invoice that I keep for tax purposes it appears to look like I profited $500 when I only profited $400 because I spent $100 of my own money on materials.


    Share on facebook


    Reply With Quote
     

  2. Collapse Details
    Pete0987,

    The cost of materials ($100) can be deducted from your gross revenue ($500) to calculate your profit ($400). How it usually works is you will be taxed on your profits of $400 but to be sure, you should consult with a CPA in your state and is familiar with the laws.


    Share on facebook


    ----

    Theresa Nguyen J.D. LL.M. Taxation
    Founding Member
    Link - Law Office of Theresa Nguyen, PLLC
    Link - About Us
    Link - About Me
    Reply With Quote
     

  3. Collapse Details
    The cost of materials ($100) can be deducted from your gross income ($500) to compute your benefit ($400). How it for the most part functions is you will be exhausted on your benefits of $400 however certainly, you ought to counsel with a CPA in your state and knows about the laws.


    Share on facebook


    Reply With Quote
     

  4. Collapse Details
    Nice article!Thanks for sharing.


    Share on facebook


    Reply With Quote
     

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •