Can I list the lease of my home battery backup as a utility expense with my home office deductions?

vicente1 · ‎March 28, 2022

I just finished paying a lease on my solar panels, and I was always told that I could deduct that expense with the utilities for my home office. No I am thinking about adding battery backup to my solar system as a way to keep my home office running in case of blackouts. Could this expense be deducted also as a utility expense? Should it be deducted somewhere else, if at all?

AlcaeusF · ‎March 28, 2022

Hello @vicente1,

Thank you for posting here in the Community. Allow me to chime in and share additional information about managing expenses in QuickBooks Self-Employed.

When you categorize a transaction, our system matches it to a line on your Schedule C. I recommend checking the IRS website to check the two basic qualifications for a home office deduction. Check out this link (scroll down to See if your home office qualifies for a deduction and click the link): Track home office deductions in QuickBooks Self-Employed.

Also, you can reach out to an accountant for expert advice about the categorization. They can provide suggestions on how to handle the new lease expense.

You can visit this article to learn how to manually add single transactions using mobile devices or a web browser: Manually add transactions in QuickBooks Self-Employed.

Keep me posted if you have additional questions regarding the categories or tracking expenses in QuickBooks. Have a great day.

View solution in original post

Adrian_A · ‎March 28, 2022

Hi there, vicente1.

I'm here to share some information when categorizing transactions.

Since you already paid the lease, you can record it as an expense transaction. If you're unsure on what specific expense item, you can reach out to your accountant, or you may check this article: Schedule C and expense categories in QuickBooks Self-Employed.

In addition to this, you may visit our Help Articles page for more tips on managing your QuickBooks Self-Employed account.

I'm just a post-away if ever you have other concerns. I'll be around!

vicente1 · ‎March 28, 2022

Thanks! Sorry, I was a bit unclear. This would be a new lease, unrelated to the solar panels lease. I mentioned that one for context.

AlcaeusF · ‎March 28, 2022

Hello @vicente1,

Thank you for posting here in the Community. Allow me to chime in and share additional information about managing expenses in QuickBooks Self-Employed.

When you categorize a transaction, our system matches it to a line on your Schedule C. I recommend checking the IRS website to check the two basic qualifications for a home office deduction. Check out this link (scroll down to See if your home office qualifies for a deduction and click the link): Track home office deductions in QuickBooks Self-Employed.

Also, you can reach out to an accountant for expert advice about the categorization. They can provide suggestions on how to handle the new lease expense.

You can visit this article to learn how to manually add single transactions using mobile devices or a web browser: Manually add transactions in QuickBooks Self-Employed.

Keep me posted if you have additional questions regarding the categories or tracking expenses in QuickBooks. Have a great day.

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Can I list the lease of my home battery backup as a utility expense with my home office deductions?