Expert: Shasta McLaughlin - 11/4/2008

Question
How do you figure the cost to create an item when you are purchasing most of your supplies from yard sales, flea markets, goodwill, etc.? Most of the time you don't get a receipt and it might be a year before you use a particular plate or buttons, etc. for the mosaic project. I now have about five projects completed and want to start trying to sell them.

Answer
Marilyn,

Honestly I don't know what the tax person will say. I suggest carrying a receipt book with you and asking the person at the yard sale if they would sign the receipt.  As far as using a partial plate in projects I would figure out approximately how much of it I had used and include that in the price and calculations of supplies used and written off for the year.

For business purposes you always need a receipt to be able to write off the purchase.

Good luck,

Shasta