Simple Schedule C Expenses Question

Mar 25, 2005 1 Replies

This is my first year filling a Schedule C for my business, a single member LLC filing as a sole proprietorship. My company is Internet based with no tangle goods and is run out of my house. I don't have room for an office that is



100% used by the business so I'm not claiming a home office deduction. My two major expenses are Internet access via a commercial broadband account which came to just over $2,500 for the year and the costs of website hosting which was around $600. I also have a residential broadband account so I can claim
100% business use for the commercial account. The question is exactly where should I place these expenses? Right now I have them lumped together on line 25 under "Utilities" but I'm wondering if $3,372 for Utilities might raise eyebrows at the IRS? Should I instead file the Internet access and hosting costs under line 27 "Other expenses" and put the details in line 48? Thanks for any answers and advise!



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I'm not sure that web hosting should be consider "utilities", but you can't go wrong with using "Other". The IRS computers might kick it out for a human to look at, but I agree that your expenses are normal for your business.

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