Forum Moderators: buckworks
Obviously, expenses like "advertising" or "repairs & maintenance" correspond to..."advertising" and "repairs & maintenance" on schedule C.
Other expense categories seem a little more open to interpretation as to where to list on schedule C. I've gotten conflicting advice from different accountants and just wondered where you all reported certain expenses on schedule C.
Can merchant account fees and paypal fees can be reported as an "office expense" on schedule C? Or do I need to break those down separately in the "other expenses" area?
Can my postage/shipping expense be reported as an "office expense" on schedule C as well?
I leave most of the standard fields blank and just report everything under "other" - mostly because QuickBooks exports directly to TurboTax and I haven't taken the time to associate every account with a line item on the tax form.
As long as the expenses were legitimate, you have nothing to worry about. And I'd rather have a separate line item for "merchant account fees" than have it lumped under Office Expenses with thousands of dollars of other expenses.
You'll still need to be able to show the IRS what went into each of the expense categories in the event of an audit, so it just comes down to personal preference.
