Publication 334 |
2001 Tax Year |
Introduction
If you make or buy goods to sell, you can deduct the cost of goods
sold from your gross receipts on Schedule C. However, to determine
these costs, you must value your inventory at the beginning and end of
each tax year.
This chapter applies to you if you are a manufacturer, wholesaler,
or retailer or if you are engaged in any business that makes, buys, or
sells goods to produce income. This chapter does not apply to a
personal service business, such as the business of a doctor, lawyer,
carpenter, or painter. However, if you work in a personal service
business and also sell or charge for the materials and supplies
normally used in your business, this chapter applies to you.
If you must account for an inventory in your business, you must
generally use an accrual method of accounting for your purchases and
sales. See chapter 2.
Previous| First | Next
Publication Index | IRS-Forms Main | Home
|