What Office Expenses Can You Deduct?

6a0133f3fc5805970b01bb079a03d9970d-320wiOffice expenses appear as a business expense category on the IRS Form Schedule C, line 18.

What expenses might you have that you can deduct on this line?

Adding machine, tape

Bank charges (checks, monthly account fees, bounced check fee)

Books (childrens’ books, parenting books, family child care books, my books!)

Bulletin board

Business forms (contracts, policies, accident reports, field trips, etc.)

Calendar/planner

Cellophane tape

Chalkboard

Computer software (Minute Menu Kids Pro, Microsoft Word, Excel, QuickBooks, printer ink, computer supplies)

Dues (membership in the National Association for Family Child Care, state and local associations)

Education and training (See my article on whether classes to get a post secondary degree are deductible)

Envelopes

Erasers

Fax machine

File cabinets

File folders

Greeting cards (birthday, holiday, get well, sympathy – for children and parents)

Ledger

Magazines (children’s magazines, parenting magazines)

Notebooks, notepads, folders

Paper, paper clips

Parent newsletters (Parent Pages Newsletter, Growing Together)

Pencils, pencil sharpener, pens

Photocopying costs

Pocket calculator

Postage stamps

Receipt books

Scanner

Stapler and staples

Sticky notes

Storage containers

That’s a lot of stuff! Make sure you are saving receipts for these items.

To be able to deduct an expense, you must use it in your business. If you use it only for your business you can deduct 100% of the cost. If you use it for business and personal purposes, you can deduct the Time-Space Percentage of the cost.

Note: You may think that some of the above expenses belong on another line on Schedule C. For example: paper, envelopes, sticky notes, and pencils could easily also be called Supplies and entered on line 22. However, it doesn’t matter where you put your expenses on Schedule C. See my article, “How to Choose an Expense Category For Items You Purchase.”

Did I miss something that you deduct as Office Expenses?

Tom Copeland – www.tomcopelandblog.com

Image credit: smallbusiness.chron.com

Record Keeping smallFor more information about what’s deductible in your business, see my book Family Child Care Record Keeping Guide which lists over 1,000 allowable business deductions.

 



Categories: Deductions, Record Keeping & Taxes

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