Many Expenses

There are, of course, many other expenses associated with your small business. Some are things you'll need for your garden, such as supplies, tools, plants and seeds; but others will be normal house— hold expenses that will become eligible as business expenses. For example, a portion of your telephone, water, sewerage, and garbage fees can be charged against the business. If you use a room in your house, or space in your garage to conduct your business and store records, a portion of your heat and electric bills can be written off against the business. The easiest way to do this is to set up a chart using categories found in the Standard IRS Schedule C, which is used for small businesses. Then go through your personal check—

book and deduct those items that apply to that room. To determine the percentage, figure the approximate size of that room against the approximate size of your house; use that percentage to figure the deduction for heat and electricity. If you hire someone to watch the children while you're delivering, that, too, is a deductible fee. Make sure you keep records of amounts paid, and to whom, to back up anything you put down on Schedule C. Don't forget any office, gardening, harvesting, or delivery equipment that you buy.

If you are conscientious about your record-keeping, filling out Schedule C will be a very easy task at income tax time.


(Form 1040)

Department of the Treasury

Revenge Service (Oj

Profit or (Loss) From Business or Profession

(Sole Proprietorship) Partnerships. Jointventures, etc.. Must File Form 1065. ► Att»ch to Form J040 or Form 1041. ► See Instruction*for Schedule C

Name of proprietor

A Main business activity (see Instructions) I

B Business name and address ^ ,

Productor Service ^ EmployerlD

Method(s) used to value closinginventory:

Accountingmethod: (1) D Cash (2) D Accrual

  • 3) D Other (attach explanation)
  • 3) □ Other (specify) ►

Was there any change in determiningquantities, costs, or valuationsbetween openingand closinginventory?. If 'Yes." attach explanation.

Did you deduct expenses for an office in your home?


1 a Gross receipts or sales

b Less: Returns and allowances,

c Subtract line lb from line la and enter the balance here

2 Cost of goods sold and/or operations(from Part Ill. line 8)

3 Subtract line 2 from line I c and enter the gross profit here

4 a Windfall Profit Tax Credit or Refund received in 1984(see Instructions) ... .

5 Add lines 3.4at and 4b. This is the gross Income ►


6 Advertising

7 Bad debts from sales or services (Cash method taxpayers, see Instructions)

8 Bank service charges

9 Car and truck expenses

10 Commissions

12 Depreciationand Section 179 deduction from Form 4562 (not included in Part

III below)

13 Dues and publications

14 Employee benefit programs .

15 Freight (not included in Part Ill below) .

16 Insurance

17 Interest on business indebtedness . .

18 Laundry and cleaning

19 Legal and professional services

21 Pension and profit-sharingplans . . .

22 Rent on business property


Supplies (not included irn Part III below)

Taxes (Do not include Windfall Profit Tax here See line 29 ) . . Travel and entertainment . . . Utilities and telephone . . . .

b Jobscredit__

c Subtractline 28b from 28a . , Windfall Profit Tax withheld in 1984 Oth e r expe nses (spec if y )

c Subtractline 28b from 28a . , Windfall Profit Tax withheld in 1984 Oth e r expe nses (spec if y )

0 0

Post a comment