What category do you (U.S. based) guys use to add your Web hosting expenses to the Schedule C? I used to put it into Supply Expenses but this year it's been especially large chunk, stands out very much from my Post-it notes purchases if you know what I mean Is it Equipement Rent? Other Rent? Utility? or still a Supply? What would you recommend? Thanks! D~
An expense is an expense is an expense. You can call it "website expenses" or "internet expenses" or whatever you want. To the IRS, it doesn't matter. I prefer to tell clients not to use "misc. expenses" if at all possible.
If the site promotes a "brick and mortar" business then it is advertising. If it is an "online only business" then rent is closest pre-defined term but I might still call it advetising expense or list it as website expense.
Thanks for your input, guys. I decided to move it into misc. category. Hope Mr. TaxMan will be happy. I agree with you that expense is an expense but they should have created those categories for a reason.
That is why there are write in spaces on the form. Please remember that I mentioned to AVOID using a misc. expense category. I have been in the accounting field for over 20 years and every CPA firm I ever worked at always tried to avoid the "misc. expense" category if at all possible.
You must create a separate expense account called "Hosting" on type of expense account - Operating for Income Statement purposes.. PM me if you have more questions would be happy to help
Thanks, soccerfriend. I was thinking in TurboTax terms just for the tax preparation for 2006. However, going forward in 2007 I'm going to set a separate account in Quicken to track the expenses separately 'cause they've become a particularly considerable chunk of money. Thanks again. D~
I call it rent, because the state revenue service in Indiana does not charge sales tax on rent, and I save 6% in taxes.