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How do you book cost of revenue on your taxes (1065 return)?
I am doing the taxes for an Engineering Firm. They do not have a COGS per say but do have the Cost of Revenue. How do I report this on the 1065? I have never completed one before
George4TacksAnswer
Level 15
December 7, 2019
You can simply treat as COGS, although many of the items may simply go to Expense.
Discuss with the client whether they are a specified service trade or business, i.e. "any trade or business where the principal asset is the reputation or skill of one or more of its employees."
Answers are easy. Questions are hard!
