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Thread: Consumables

  1. #1
    Join Date
    Mar 2009
    Location
    Stockton on Tees..North East UK.
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    Default Consumables

    I've just ordered some more belts and discs for my sander....And I wondered if anyone else takes stock of these and other consumable items that are used in the workshop..eg: various glues, bandsaw blades, shellac, wood stain, laquer, wire wool, disposable knife blades, cotton buds, rubber gloves, dust masks, Plastic bags, Abrasive sheets, marker pens, pencils, wax polish, masking tape, binding tape, propane canisters, Packaging materials, ect: etc: ..all these things cost money and have to be replaced at regular intervals
    http://ukulele-innovation.tripod.com ebay i/d squarepeg_3000 Email timmsken@hotmail.com

    If you can believe that moving images and sound, can fly through empty space across the universe and be seen and heard on a box in your living room ?.. then you can believe in anything.

  2. #2
    Join Date
    Aug 2008
    Location
    Wales, UK
    Posts
    5,124

    Default

    With 20 years of accounts I know these costs and factor them into every build. If it's your hobby, then it doesn't matter because you are doing it for the love of it, unlike a business which exists primarily to put food on the table and pay the rent...

  3. #3
    Join Date
    Mar 2013
    Location
    Central Illinois
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    261

    Default

    In the U.S. of coarse.
    Every item used for the production, packaging, or shipping of instruments is expensed. I even tally mileage for every trip to obtain supplies or even a run to the post office to ship anything instrument-related. All of those expenses come directly off the tax burden that comes from the "profit" side of the equation. Even if you can't write off consumables on your taxes all of that must be kept track of if you want an accurate picture of what your gross and net income is.
    Last edited by rudy; 09-08-2014 at 11:46 AM.
    The only thing better than playing is building!

  4. #4
    Join Date
    Aug 2008
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    Wales, UK
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    Default

    Likewise here in the UK - everything consumed is set against your tax bill - these are the 'variable costs' in accounting terms.

  5. #5
    Join Date
    Nov 2013
    Location
    Stratford, Connecticut
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    1,625

    Default

    My business is a bit different than yours but I do go through my share of consumables. Its all cost of doing business. My advise to anyone in business is hire an accountant, you can likely write off his fee.

    ~AL~
    This space reserved for a smart or witty comment or a famous quote. It may also be used to promote my accomplishments should I ever accomplish anything worth sharing.

  6. #6
    Join Date
    Dec 2011
    Location
    Grand Junction, Colorado
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    Default

    I have to check into the tax break for having a workshop at home

  7. #7
    Join Date
    Aug 2009
    Location
    Virginia Beach, Virginia
    Posts
    141

    Default

    That is a really common tax write-off Beau. The space has to be used only for business (which you can easily prove)....then it is just the percentage of square footage of your shop relative to the entire square footage of your house (including shop). In your case I would recommend it....could save you a lot of $$.

  8. #8
    Join Date
    Nov 2009
    Location
    Western Massachusetts
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    467

    Default

    Quote Originally Posted by Beau Hannam Ukuleles View Post
    I have to check into the tax break for having a workshop at home
    Find yourself a good CPA. I have a good friend who keeps me on track with the business side of all this. I really don't know too much about it all, except I write everything to do with the ukuleles off. Most consumable items are written off as Cost of Goods (COGS), large tools are written off over several years, My basement and one office/bedroom are tax write offs, as are workshops I attend, Trips to conventions, ukulele festivals. Wasting time on the internet isn't though!

    Keeping track of all this takes a lot of time, but is really worth it.
    Stephen Beauregard
    www.snowshoeuke.com

  9. #9
    Join Date
    Jun 2013
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    9

    Default

    Quote Originally Posted by Flyfish57 View Post
    Wasting time on the internet isn't though! .
    Surely this is legitimate research and development? No?

  10. #10
    Join Date
    Mar 2009
    Location
    Columbus, IN
    Posts
    821

    Default

    Since business practices were touched on, I'm curious how many builders are incorporated? Trying to decide whether to be a s-corp so I can buy my consumables tax exempt as well as open me up to buy from a broader range of suppliers.

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