FAQ is a regular blog feature that answers frequently asked questions and makes them available as a growing list of tagged blogs.
The short answer is “yes”, COGS are always 100% deductable. In general, the IRS lets you deduct the cost of creating the goods that you will eventually sell.
But there is a longer answer that you need to be aware of: When we say “always 100% deductible” that comes with the unstated clarification that those costs are reasonable. When the IRS looks at your deductions, they’ll compare your COGS deductions with your income and other expenses. If it seems way out of line, they’ll inquire in order to make sure that you’re not deducting personal purchases or fake purchases. If you can back up your purchases, great. But make sure you can give a good reason!
Do you have a Question? Please email it to support@iacez.com.
IAC-EZ is a few things:
We are a business bookkeeping site dedicated to making your bookkeeping EZ.
We are an innovative leader in bookkeeping (because we’re the only ones on the web offering transaction-based bookkeeping).
And, we’re a community.
In creating IAC-EZ, it was important to us that we should be more than just a place that people go to keep their business’ books. We want to be a place for people to interact and find value – far more value than simply a place that tells them if their bills are all paid.
That’s why we have implemented our forum! Our forum is a place where you can come and talk about IAC-EZ, ask questions, give answers, talk about your business, and connect with other business owners.
Visit our forums.
When you go there, you’ll notice that there are 2 sections.
The first section is “All things IAC-EZ” where you can ask questions, read official communication, make suggestions to influence our roadmap, and get support on interface or even bookkeeping questions. And guess what, if you have a bookkeeping question, your question isn’t answered by a monkey who can type, or by the janitor, it’s answered by a certified accountant.
The second section is “Everything else”. Here, you can do a little blatant self-promotion for your company (hello backlink), complain about tax time (keep it clean and family friendly), and even get free business advice from a business consultant.
But a forum is only as good as its participants. So participate!
Here’s what I’d like you to do:
Right now (yes, right now) click over to http://forum.iacez.com and register. Then say hello in one of our forums. (Yes, you need to register again… we do this to keep it compartmentalized from your bookkeeping so your business’ finances are kept totally separate).
Registering just takes a minute. Oh, and after you’ve checked out our forums, leave a message and introduce yourself. Who knows, maybe another IAC-EZ forum user who needs YOUR business’ service will find you here!
Jessica Routier, IAC-EZ
