Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 12-25-2016, 06:36 AM
Junior Member
 
Join Date: Dec 2016
Posts: 7
Should I Itemize Schedule C Expenses?

Last year, I paid a professional tax preparer to file the tax return for my small business, and he added a couple of extra pages (that he entitled "Additional Information from 2015 Tax Return) to my tax return where he itemized my Schedule C "Gross Receipts" (Line 1) as well as various Schedule C Part II Expenses like "Advertising" (Line 8), "Taxes & Licenses" (Line 23), etc. I assume this is not mandatory, since I couldn't find IRS instructions that say to do this, but is it a good idea to itemize expenses on a separate sheet of paper so the IRS can see exactly what my Office Expenses or Advertising expenses consisted of? I was thinking it might help answer questions that could trigger an audit. Of course the opposite could also happen if some of the itemized expenses raise questions that might not have otherwise existed.

How common is it for sole proprietors to itemize their Schedule C Part II Expenses on a separate sheet of paper, and is it a good idea to do this?

Thanks for your help.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 12-25-2016, 10:24 AM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
Last year, I paid a professional tax preparer to file the tax return for my small business, and he added a couple of extra pages (that he entitled "Additional Information from 2015 Tax Return) to my tax return where he itemized my Schedule C "Gross Receipts" (Line 1) as well as various Schedule C Part II Expenses like "Advertising" (Line 8), "Taxes & Licenses" (Line 23), etc. I assume this is not mandatory, since I couldn't find IRS instructions that say to do this, but is it a good idea to itemize expenses on a separate sheet of paper so the IRS can see exactly what my Office Expenses or Advertising expenses consisted of? =======>>In general, it is up to the tax pro. there is no penalty in adding addtl info for itemized g.receipts/adv or other exp items if the preparer thinks that he needs to do it; tax pros USUALLY separate tax return fees for preparation of the tax forms related to your business and for individual return of form 1040 I guess this method is more reasonable to avoid a possible audits by the IRS


I was thinking it might help answer questions that could trigger an audit. Of course the opposite could also happen if some of the itemized expenses raise questions that might not have otherwise existed.

How common is it for sole proprietors to itemize their Schedule C Part II Expenses on a separate sheet of paper, and is it a good idea to do this?====> As mentioned above I can not tell you how often as it is up to a tax pro?s personal decision/choice



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Schedule C: Supplies vs Office Expenses vs Depreciation NocturneX9 Sole-Proprietorship 1 12-25-2016 11:14 AM
Schedule C: How to report expenses for recording project taking more than one year to complete? Timjkrol Filing Requirements 3 03-25-2016 10:21 PM
Whose Medical Expenses Can I Include under Medical Expenses on Schedule A? presley Medical 1 03-13-2008 09:57 PM
A Taxpayer may use a Schedule C- EZ when he has <$5,000 of business expenses? TaxGuru Sole-Proprietorship 0 02-11-2008 08:37 PM
Should You Itemize? Samatg General 0 01-23-2007 07:48 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.