small business tax deductions?

B

Byron

New member
So i'm looking to start a small business. The plan is simple, basically I'll be looking for relatively inexpensive vehicles that need some TLC. With my resources and personal know how i can bring most projects to a more respectable condition for an already existing client base. My question is this...i know what business expenses are and i know what capital expenses are but what do purchases directly attributed to the "product" classify as? If I spend money, not on garage equipment but on new components that actually increase the value and quality of the car i'm working on thus increasing the selling price (new brake technology, new safety technology, new aesthetics...) How does all this fall into tax deductions?
 
I think that falls under the Cost of Goods Sold, which you deduct from your total sales. This lowers your net income which of course can lower your taxes. But to be sure, ask an accountant =)
 
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