Tax Masters
Tax Masters is a training podcast for Pack Tax Pros. Each episode makes complex tax concepts simple and practical, so you can earn client trust, solve problems, and make more money as a Pack Tax Pro.
At Pack Tax, mastery isn’t just about knowing the rules—it’s about knowing how to explain them in a way that helps clients understand what it means for them. When you can do that, clients see you as the solution to their problems—and that’s where the money is.
Listen to episodes more than once, let the language sink in, and make it part of your vocabulary. The more you master, the more valuable you’ll become.
Tax Masters
Episode 7 - Cost of Goods Sold (COGs)
FAQ: What are COGs, and why do I need to identify them and report them differently than other expenses? And where do I do this?
Main Objective: Learn how to identify expenses that need to be reported as COGs and where to report them on the different tax forms.
Description: In Episode 7 of Tax Masters, we unpack the essentials of Cost of Goods Sold (COGS), a key deduction for businesses that sell products. We explain how to calculate COGS, covering inventory costs, direct labor, and materials, and clarify its role in reducing taxable income. You’ll learn how COGS is reported on Schedule C for sole proprietors, Schedule F for agricultural businesses, Form 1065 for partnerships, and Form 1120S for S corporations. We highlight IRS guidelines, common errors like misclassifying expenses, and strategies for maintaining compliant inventory records. Plus, we offer practical tips to maximize deductions and minimize audit risks. Tune in to confidently guide your clients through COGS and tax reporting!