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New Member
posted Oct 30, 2019 6:46:52 PM

As a tattoo artist, do I consider the materials I use at my sessions to produce 'the product' (e.i. the tattoo), as part of the ' Cost of Goods Sold'?

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Level 11
Oct 30, 2019 6:46:54 PM

If you're self-employed,  the materials you use to complete your service would be a better fit in the Business Expenses section of your return rather than the Cost of Goods sold. COG is usually used for businesses that sell products rather than services. 

In the Business Expenses section of your return, the spot to enter Other Supplies can be found on the same screen as Office Expenses. Supplies such as ink, needles, gloves, ink cups, tips, transfer paper, etc. can be lumped together in this category. 

It's important to note that if you have purchased your own equipment (such as a rotary machine), don't include that cost in your other supplies. Since the equipment offers long-lasting value, it's considered to be a capital asset. Instead of claiming the full cost all at once, the expense is deducted over a number of years using the Capital Cost Allowance (CCA).

1 Replies
Level 11
Oct 30, 2019 6:46:54 PM

If you're self-employed,  the materials you use to complete your service would be a better fit in the Business Expenses section of your return rather than the Cost of Goods sold. COG is usually used for businesses that sell products rather than services. 

In the Business Expenses section of your return, the spot to enter Other Supplies can be found on the same screen as Office Expenses. Supplies such as ink, needles, gloves, ink cups, tips, transfer paper, etc. can be lumped together in this category. 

It's important to note that if you have purchased your own equipment (such as a rotary machine), don't include that cost in your other supplies. Since the equipment offers long-lasting value, it's considered to be a capital asset. Instead of claiming the full cost all at once, the expense is deducted over a number of years using the Capital Cost Allowance (CCA).