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Chris Cooper
Level 1

Why do advertising and meals costs sometimes show as as disallowable expenses?

Hi,

 

I am going through by taxes and have noticed some discrepancies in the way Quickbooks is allocating some expenses.

 

Under Advertising and business entertainment costs, Quickbooks is allocating some advertising and website costs and meals and entertainment costs as allowable and others as disallowable.

 

Despite some of the expenses being from the same supplier. For example, Clickfunnels is marked identically as advertising and website each time, but Quickbooks sometimes marks them as allowable and sometimes as disallowable.

 

Do you know why this is, and how I can get them all to show as allowable?

9 REPLIES 9
JaneD
Moderator

Why do advertising and meals costs sometimes show as as disallowable expenses?

Hello there, Chris Cooper.

 

QuickBooks Self-Employed (QBSE) looks at your current income and allowable expense to figure the profit. Some types of expenses aren't business allowable. This depends on the business operation, entity, and local regulations that apply.

 

Let me share these articles that will provide more information:

I recommend consulting an accounting professional for help claiming these expenses to make it allowable.

 

Please leave a comment below if you have any follow-ups or other questions. I'm here to help. Have a great day.

Chris Cooper
Level 1

Why do advertising and meals costs sometimes show as as disallowable expenses?

Thanks for this Jane.

 

However, it doesn't quite address the issue I have.

 

I can't understand why Quickbooks would count a regular expense, e.g. an advertising and website cost like Clickfunnels as being allowable one month, but disallowable the next. When it's the same supplier, same categorisation and same amount! This doesn't make sense to me.

 

Likewise, why are some meals and entertainment expenses of similar amounts sometimes classed as allowable or disallowable.

 

Surely, they should be either one or the other if they are essentially for the same thing!

 

Chris

TaliaI
QuickBooks Team

Why do advertising and meals costs sometimes show as as disallowable expenses?

Hello Chris,

 

Do you have access to Facebook or Twitter? If so, would you be able to private message us (QuickBooksUK) with your email address so we can look into this further for you?

 

Thanks,

 

Talia

Chris Cooper
Level 1

Why do advertising and meals costs sometimes show as as disallowable expenses?

Sure, I'll send you a message on Facebook.

 

Chris

Eliza Murphy
Level 1

Why do advertising and meals costs sometimes show as as disallowable expenses?

Hi all, apologies to jump on this, but i am having the same issues and like your response I messaged via facebook private messenger, twice now and have not had anything back (this was last week), can you explain why this is and please ask someone to reply to the messages via messenger or give a proper response. It should be up to the owner of the business to decide which expenses are allowable and disallowable, Quickbooks perhaps should be advising, but not deciding without a chance to be corrected and so there must be a way of doing this that you can write on a post?

Thank you 

Eliza

John C
QuickBooks Team

Why do advertising and meals costs sometimes show as as disallowable expenses?

Hi Eliza

 

We apologise if the posts have not been answered however if you  can DM us on Twitter or PM us on FaceBook with the email address associated with your QuickBooks account to investigate this further for you, please include your community name, Eliza Murphy.

gileshg
Level 2

Why do advertising and meals costs sometimes show as as disallowable expenses?

Hi,

 

I have the same problem. I have website and advertising expenses that are categorised as disallowable. Could you perhaps reply to the previous questions on the forum so that we can all benefit from the answers?

 

thanks

 

Giles

EmmaM
QuickBooks Team

Why do advertising and meals costs sometimes show as as disallowable expenses?

Hello Giles

 

The transactions showing as disallowable in the tax summary could be down to the specific category selected against it.Are you using advertising as website as the category?If you are it should go into allowable however if you have selected meals and entertainment it will put this into disallowable.

The easiest way to check this is to go to taxes on the left hand side and then click on the disallowable amount in that category it should then show you what expense category has been selected.

 

The reason we do not always answer the question directly here is generally we have to get screen shots to see what categories are being selected and we have found users for security reasons are reluctant to post them here with it being a public forum

 

 

Any questions just reply back to this post

 

Emma

gileshg
Level 2

Why do advertising and meals costs sometimes show as as disallowable expenses?

Hi Emma,

 

I'm using the category advertising/website and it's going to disallowable... so I've just moved them all to other expenses.

 

best

 

Giles

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