26 votes

How to separate interest paid on a credit card between personal and business expenses?

There is no rule of thumb that can be used to separate the amount paid in interest. The reason why so much interest was paid was because when you don't pay it off each month the new charges ...
mhoran_psprep's user avatar
8 votes
Accepted

Is a purchase still a Schedule C expense if its paid using a gift card?

Method of payment should have no bearing on whether something is a qualified business expense or not - it may make auditing more challenging, but it's not required that expenses come from a "...
D Stanley's user avatar
  • 133k
8 votes

How to separate interest paid on a credit card between personal and business expenses?

Don’t use an estimate. Use a spreadsheet. Banks charge interest that can be apportioned down to the cent for each card transaction. If you have the dates and amounts, as well as the rules used for ...
Lawrence's user avatar
  • 9,322
7 votes

Business service doesn't exist on tax form. What do you do?

On your tax return's Schedule C, Line B, you need to enter the Principal Business or Professional Activity Code that corresponds to your business's activities. There is a list of these 6-digit codes ...
Ben Miller's user avatar
  • 115k
6 votes
Accepted

Taxes overpaid when alive; file amended return after death?

Absolutely, and that's exactly what will happen. You may use Form 1040X to amend a 1040 tax return for up to three years after the due date of the initial filing. For instance you may amend your ...
Harper - Reinstate Monica's user avatar
6 votes

How to separate interest paid on a credit card between personal and business expenses?

By utilizing the card for both personal and business expenses, the account itself is now intermingled in to both, so you cannot split apart the interest expense easily. If you itemized the outstanding ...
Shorlan's user avatar
  • 532
5 votes

How to separate interest paid on a credit card between personal and business expenses?

You should arrange for a separate card for personal and business use. You are unlikely to be able to completely disentagle the two at this stage and will likely have to forego this tax break to date. ...
David258's user avatar
  • 355
5 votes
Accepted

US Self-Employment Tax: Do expenses stack with the 50% SE deduction?

Business expenses reduce business income. The SE tax is paid on business income. The credit for 1/2 the SE tax is based on the amount of SE tax paid. So: Take business net revenue Subtract business ...
David Schwartz's user avatar
4 votes
Accepted

Schedule C: where to report revenue split and professional supervision fees for a therapist?

I’ll let you in on a little secret: It doesn’t matter a whole lot which line you put these business expenses on; the tax will be the same no matter which one you pick. That having been said, you do ...
Ben Miller's user avatar
  • 115k
3 votes
Accepted

What Schedule C Health care Expenses can I deduct?

For someone self-employed with a Schedule C business, there is the Self-Employed Health Insurance Deduction (SEHID). This allows you to deduct the amount you pay for health insurance premiums off your ...
Ben Miller's user avatar
  • 115k
3 votes
Accepted

What are the tax implications if I share single credit card processor between my two sole proprietorships?

Other than having two schedule C's your tax situation is no different than if you had one sole proprietorship. You file one Schedule SE that combines the income from all Schedule C's and you report ...
Hart CO's user avatar
  • 70.3k
3 votes
Accepted

Schedule C: where to deduct service fees on income?

Putting them on line 10 is best suited for your situation. According to Quickbooks: Commissions and Fees (Line 10) Commissions/fees paid to nonemployees to generate revenue (e.g. agent fees). It ...
Michael's user avatar
  • 10.2k
3 votes
Accepted

Deducting business expenses paid for by gift card

To quote the answer you linked to: Perhaps the simplest way to think about this is you can only deduct an expense that you actually incur. In other words, the expense should show up on a bank or CC ...
TTT's user avatar
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3 votes
Accepted

Why does IRS propose to add in 1099-MISC income I already reported on Schedule C?

The 1(a) and 1(b) separation may have been explicit on the return filed electronically. There's a lot of information being electronically filed that you would add in "statements" as attachments to ...
littleadv's user avatar
  • 171k
3 votes

How to separate interest paid on a credit card between personal and business expenses?

This is an audit magnet. The short answer is ”You don’t. You use separate cards.” And I think you know that. And the IRS is going to take that viewpoint: “What the heck are you doing here!!!???” It’...
Harper - Reinstate Monica's user avatar
2 votes

Can we amend last year's Schedule C to indicate reduced income due to a customer refund this year for a product we sold last year?

I am not an accountant, but I have a light accounting background, despite being primarily an engineer. I also have a tiny schedule C business which has both better and worse years. I am also in the ...
cmm's user avatar
  • 221
2 votes

How to avoid double taxation of self-employment income for a U.S. citizen living in Italy?

@KurtPeek Article 14 of the treaty deals with personal income taxes, not selfemployment and welfare, which is unfortunately subject to double taxation if there is no totalization agreement between the ...
Marco Lo Monaco's user avatar
2 votes

Health insurance deduction on schedule C if also full time employee with w2?

Do you satisfy the necessary criteria listed there? Then why not?... It sounds like you do.
littleadv's user avatar
  • 171k
2 votes

How to pay taxes on single owner LLC

Instead 'me' the owner of the LLC must report all profits (or losses) of the LLC on Schedule C and submit it with your 1040 tax return. Correct, you will report your business income on Schedule C if ...
Hart CO's user avatar
  • 70.3k
2 votes
Accepted

For purposes of US Income taxes: Is delivering for Uber and DoorDash two businesses?

You can combine closely related activities onto one Schedule C. If your businesses were delivering food and fixing computers, they would clearly be separate Schedule C's, in this case it's less ...
Hart CO's user avatar
  • 70.3k
1 vote

Can a Disregarded Entity has a loss on schedule C deduct a loss on the personal return?

LLC has nothing to do with your question. Active activity loss on Schedule C will only flow to form 1040 line 3 if all the investment is at risk (and then it reduces your total income). If not all the ...
littleadv's user avatar
  • 171k
1 vote
Accepted

Prove to the bank that a Schedule C business closed a year and half ago

Is there a different way to prove that her business is no longer active? Not to the government. The bank should tell you what alternative paperwork they can accept. You'll need to explain to the bank ...
littleadv's user avatar
  • 171k
1 vote
Accepted

Separate bank account / finances from Schedule C sole-proprietorship for single member "disregarded entity" LLC

It's more of a legal question than a tax question. The IRS doesn't care about your bank accounts, it cares about your income (the R stands for Revenue). In order to protect yourself from piercing the ...
littleadv's user avatar
  • 171k
1 vote

Where should I put Internet expenses for my Home Office?

On form 8829, line 20 you can list utilities paid for the home office. You have two choices: 1) You can list the entire amount under column (b) as an indirect expense. You will then get a deduction ...
David Schwartz's user avatar

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