- IRS Publication 334, Tax Guide for Small Businesses (Chapter 6)
- 2014 Instructions for Schedule C
- Cost of Goods Sold and The Tax Gap
Why YOU Should Care
If your business makes money by selling goods – either those you make yourself or those you purchase from others for resale – you need to track the components of your cost of goods sold to report on your tax return for the year. Labor is a component of your cost of goods sold, so it is important you understand what it comprises.