TAXMAN Posted June 18, 2015 Report Share Posted June 18, 2015 TP started art and weaving business in 2013. Most all supplies etc went to start up in 2013. In 2014 TP spent about $6k for all kinds yarns and supplies. TP has no income from this venture in 2013 or 2014. What would you do with all these supplies that are needed to do loom weaving and art decorations? TP was formally an art teacher at local school b4 retiring. Thanks for the imput. Quote Link to comment Share on other sites More sharing options...
MDEA Posted June 18, 2015 Report Share Posted June 18, 2015 Sounds more like a hobby than a business. 1 Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted June 18, 2015 Report Share Posted June 18, 2015 Start up costs to be amortized once she actually has business income. Till there is income, nothing to do with the expenses. Quote Link to comment Share on other sites More sharing options...
Lion EA Posted June 19, 2015 Report Share Posted June 19, 2015 Inventory and unfinished inventory? 2 Quote Link to comment Share on other sites More sharing options...
michaelmars Posted June 19, 2015 Report Share Posted June 19, 2015 under TPR regs, since its reasonable to expect to use up the yarns within the time period I would probably expense. Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted June 19, 2015 Report Share Posted June 19, 2015 Inventory and assets are not start up expenses. Supplies are an expense, so they would be a start up cost if this is a real business with a plan to make money, etc. Until then, it's just an expensive hobby. 2 Quote Link to comment Share on other sites More sharing options...
joanmcq Posted June 20, 2015 Report Share Posted June 20, 2015 Has she offered anything for sale yet? That is the cut off date between start up & expenses. That said, I'd think the cost of the yarn would be in COGS/inventory. If she is weaving large pieces she knows how much goes into each piece. Quote Link to comment Share on other sites More sharing options...
TAXMAN Posted June 22, 2015 Author Report Share Posted June 22, 2015 (edited) Had some income in 2014 but looks like 2015 will be better as tp is now listed as a loomer(what ever that is) and was featured in a a big state artisan event. I am leaning towards all these cones of yarn and etc being inventory and letting TP tell me how much is left. TP does have a separate bank account and a business license for this. Edited June 22, 2015 by TAXMAN fixed a couple of words 1 Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.