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32SNT23
Level 1

How should I record "Utilities (home office)" on the transaction page, if I only pay 10% of the part of the utilities used for my home office?

My husband pays 90% of the utility bills and I pay 10% of the rest of the utility bills as my home office is 10% of the house.
The problem here is that the "DEDUCTION" is applied an extra 10% deduction from "SPENDING" amount when I set the "home office size" for the home office deduction. Since the expenses of utility bills on my transaction page are after calculating and paying the 10%, so what I see Home office expenses deduction is an incorrect amount.

In this case, should I choose the category "Utilities" instead of "Utilities (home office)" on the transaction page?

7 Comments 7
FritzF
Moderator

How should I record "Utilities (home office)" on the transaction page, if I only pay 10% of the part of the utilities used for my home office?

Welcome to the Community, @32SNT23.

 

You've come to the right place! I can share information about choosing the category for your expense transaction in QuickBooks Self-Employed (QBSE).

 

Yes, you can select Utility as the category type. If you use your home as your office, you can use this to categorize utility payments at an office or business property.

 

There are also other types of transactions that you can categorize as Utilities. Among these are:

 

  • Gas and electricity
  • Water
  • Trash collection
  • Monthly pest control service
  • Security alarm monitoring service
  • Sewer and septic service

 

Also, QBSE automatically calculates your home office deductions as long as they are categorized accordingly. If you're unsure what to choose, you can always consult your accountant for further advice.

 

I'm also adding these articles to learn more about categorizing and managing transactions in QBSE:

 

 

Our website is always available if you want to see more tips and other resources in the future. QBSE self-help articles.

 

I'm always around if you have more questions about categorizing transactions or anything else. Have a great rest of the day.

32SNT23
Level 1

How should I record "Utilities (home office)" on the transaction page, if I only pay 10% of the part of the utilities used for my home office?

>you can select Utility as the category type. If you use your home as your office, you can use this to categorize utility payments at an office or business property.

 

What is the difference between "Utilities (home office)" and "Utilities"?

And also, what is the difference between "Other business expenses" and "Other home office expenses"?

ReymondO
QuickBooks Team

How should I record "Utilities (home office)" on the transaction page, if I only pay 10% of the part of the utilities used for my home office?

Good day, @32SNT23.

 

Let me join the conversation and answer these queries for you. 

 

You'll want to use the Utilities category for a business located outside of the home office. You can use this to categorize utility payments at an office or business property.

Here are types of transactions you can classify as utilities:

 

  • Mortgage or rent
  • Property taxes
  • Interest
  • Insurance
  • Maintenance
  • Repairs
  • Gas, electric, and water

 

On the other hand, use Home office expenses to deduct the cost of building your home. You can fully write off every nail, every tile, even the costs of contractors and construction licenses. Just see to it that you're improving the area for business reasons and not for personal use.

 

Moreover, Other business expenses can be used to use categorize all ordinary and necessary business expenses not deducted elsewhere on Schedule C. These are miscellaneous business expenses. Sample of these are clothes, a computer, equipment, a work uniform, and work boots, with some exceptions.

 

If you're referring to Utilities as Other home office expenses, check the details I've shared above for further info. 

 

To know about Schedule C categories and how to categorize transactions in QuickBooks, check out this article: Learn about Schedule C categories.

 

For the most up-to-date Schedule C info, check the IRS website.

 

I'll be here if you have other questions in QBSE, @32SNT23. You take care and have a great day!

32SNT23
Level 1

How should I record "Utilities (home office)" on the transaction page, if I only pay 10% of the part of the utilities used for my home office?

@ReymondO 

If so, in this case below what category should I choose for the utility bills? 

Spoiler
My husband pays 90% of the utility bills and I pay 10% of the rest of the utility bills as my home office is 10% of the house.
The problem here is that the "DEDUCTION" is applied an extra 10% deduction from "SPENDING" amount when I set the "home office size" for the home office deduction. Since the expenses of utility bills on my transaction page are after calculating and paying the 10%, so what I see Home office expenses deduction is an incorrect amount.

 

GlinetteC
Moderator

How should I record "Utilities (home office)" on the transaction page, if I only pay 10% of the part of the utilities used for my home office?

Hello, 32SNT23.

 

In QuickBooks Self-Employed, we're unable to advise what category you can choose for the utility bills. I suggest consulting your accountant for guidance on what category to use for that transaction. This is to ensure your books are accurate.

 

Also, I encourage you to check out these links for managing transactions in QBSE:

 

 

Comment below if you need anything else. Stay safe!

32SNT23
Level 1

How should I record "Utilities (home office)" on the transaction page, if I only pay 10% of the part of the utilities used for my home office?

@GlinetteC @FritzF 

I could not really get the difference between "Other business expenses" and "Other home office expenses".

Could you explain it with examples?

LeizylM
QuickBooks Team

How should I record "Utilities (home office)" on the transaction page, if I only pay 10% of the part of the utilities used for my home office?

Hi there, 32SNT23. 

 

I can share with you the difference between Other business expenses and Other home office expenses in QuickBooks. 

 

The Other business expense is referred to as deductions, business expenses are the costs of operating a business. They’re recorded on the income statement. These expenses will be subtracted from business revenue to show a company's net profit or loss and taxable income. 

 

While the Home office expenses are expenses incurred from the operation of a business or the performance of employment-related activities within a primary residence.

 

Examples of office expenses may include the internet bill, phone lines, utilities, cost of stationery, taxes, etc.

 

For now, let me share these easy-to-access articles, webinars, and video tutorials that will help you in familiarizing the different tasks, features, and functions of QBSE. Below are the following:

I’m happy to offer assistance again if you have more questions for QuickBooks. Post a new thread or reply here and I’ll be there.

 

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