How do you include a "cost of goods sold" when you are primarily a professional service but also sell goods and have inventory and make profit through sales?

[justininoue]

How do I include a "cost of goods sold" if I sell books as part of my professional service business.  I primarily provide a service (i.e. coaching) but I also have bought books I have for inventory.  I then sell these books with a margin so I make income off of selling my books.

[Delphision · Accepted solution]

Instead of clicking on self-employment -professional, you would click on self employment - other.  All of your revenue will be sales, but you will have a cost of goods and inventory.

[avstudio1]

The options that you identify are not available.

[huffer1]

can turbo tax answer this as I'm having the same issue

[Delphision]

Go to the income tab>self-employment>business or professional>enter new business>choose "other type of business"  That is where you will find cost of goods if you have the online version.  If you have the installed disc or download, click on the forms icon and type in T2125B.  I can't make it any plainer than that.

[avstudio1]

I think the main difficulty lies in that you may have created your business under the 'professional' category. At this point you have to delete this company and start over. That point above all is the missing piece of the puzzle. This is what I had to do.

[huffer1]

Yes I had to delete and re-enter as "other type of business".  Thank you avstudio1...  and thank you Delphision for make me feel incompetent.

[Delphision]

No Problem. :smile: