D-20

Schedule C General Expenses

Schedule C Expenses

All allowable and documented expenses must be reported on Schedule C. If there are deductible expenses as described in Pubs 4491 and 535 that are out of scope for Tax-Aide, the return is out of scope for Tax-Aide and the taxpayer must be referred to a professional tax preparer – there is no option to disregard allowable and documented expenses.

See also OneSupport Help Center>Tax Training>Policy/Tax Law>Schedule C Guidelines Summary for more information about Schedule C income and expenses.

The following expenses are out of scope: Contract Labor, Depletion, Employee benefit program, Health Insurance, Mortgage interest, Pension and profit sharing, and Wages.

To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your industry. A necessary expense is one that is helpful and appropriate for your trade or business. An expense does not have to be indispensable to be considered necessary.

Note: Car and truck expenses aren’t entered on this page. Those expenses are entered on a separate page.

TaxSlayer navigation: Federal Section>Income>Profit or Loss from a Business>General Expenses; 1040 View Line 12; Keyword “C”

Assets or repairs to assets that cost less than $2,500 per item or invoice can be deducted without depreciating it. Enter it on the Other Expense page, labeled "de minimis asset."

• Vehicles rented formore than 30 daysare subject tospecial limitationrules and are outof scope.

• Rentals of otherbusinessequipment aredeductible and inscope.

NTTC 12/17/17, 2/21/18

Schedule C - ExpensesAdvertising /Pension and profit sharing y$ $

Contract Labor Rent or lease of equipment$ $

Commission and fees Rent or lease of property$ $

Depletion Repairs and maintenance$ $

SuppliesEmployee benefit programs $ $

Health Insurance(will carry automatically toworksheet)

Taxes and licenses$ $

Travel $

Meals and entertainment (50%)Enter 100%of the expenses.

Insurance(other than health)

$$

Meals and entertainment (80%)Enter 100%of the expenses.

Mortgage interest $$

Other interest $Utilities $

Legal and professional services $Wages(less employment credits)

$Office expense $

ContinueX CancelCAUTION: The self-employed health insurance deduction, including deductible LTC, can be a substantial tax savings for the taxpayer, especially if there are state tax or ACA savings. This deduction (line 29 of form 1040) is out of scope. Counselors should refer taxpayers to paid preparers when the self-employed health deduction applies.