One business deduction is the same as another -- almost.

June --

Re federal schedule c: business profit or loss

i find it so tricky to sort expenses in some of those categories!
materials?
supplies?
misc?

Lisa
Branding consultant specializing in marketing and promotion for cultural creatives and small business
Portland, OR


Hello Lisa,

As long as a a deduction category has the same deductibility as another category it doesn't really matter if you choose the wrong category.

By that I mean if something is an immediate deduction, for instance, printer toner, it doesn't matter if you put it in office expense or supplies.

However, if something must be treated in a different way, let's say a printer costing $500, then that must be treated as equipment and could not be characterized as an office supply to be written off immediately.

A meals & entertainment expense is only 50% deductible. An advertising expense is 100% deductible. You must understand expenses well enough to know not to categorize a dinner with a local bigwig as an advertising expense.

Visit here to get my complimentary list of 100+ business expenses. It will help you categorize business deductions.

-- June