Starting Your Business/Keeping Tax Records
What are Business Expenses
Supplies & Materials
Unless you have deducted the cost in any earlier year, you generally
can deduct the cost of materials and supplies actually consumed and used during the tax
year.
If you keep incidental materials and supplies on hand, you can
deduct the cost of the incidental materials and supplies you bought during the tax year if
all three of the following requirements are met:
1) You do not keep a record of when they are used,
2) You do not take an inventory of the amount on hand at the
beginning and end of the tax year, and
3) This method does not distort your income
You can also deduct the cost of books, professional instruments,
equipment, etc., if you normally use them up in less than a year.
Important References:
Publication
535
Business Expenses
Form
1040 Schedule C Profit or Loss
from Business