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SteveIBrown
Level 1

IRS EXPENSE CATEGORIES THAT MATCH UP WITH INTUIT'S LIST

I have set up only the following accounts becaUSe I believe they most closely match the IRS designations for a partnership return.

Advertising
Auto
Capitalized
Charitable Gift
Cleaning & Maintenance
Commissions
Computer Repair
Depreciation
Equipment Purchase
Insurance:Property
INTEREST
Legal & Professional
Management
Meals & Entertainment
Medical
Office Expenses
Paid to Owners
Phone
Postage
Rent or Lease
Repairs
Supplies
Taxes
Travel
Uncategorized Expenses
Utilities

Where do you SUGGEST I place 1099 employees, business gifts, education expenses?

Steve


Complete List of partnership Expenses and Tax Deductions

6 Comments
Rustler
Level 15

IRS EXPENSE CATEGORIES THAT MATCH UP WITH INTUIT'S LIST

You can create as many expense accounts as you wish, if they do not fit under one of the listed expenses, then you use Other expense, and list them in the section it refers to

 

there is no such thing as a 1099 employee, employees are on payroll
1099's are issued to vendors you do business with that qualify and on the tax form it is called non-employee compensation, create the expense account for it is my suggestion.

SteveIBrown
Level 1

IRS EXPENSE CATEGORIES THAT MATCH UP WITH INTUIT'S LIST

Thanks. I knew I could set up as many accounts as I wanted, and I misstated the word employee with 1099, I am trying to keep my expense account names within the few that the IRS uses just to make tax time prep easier.

So I am trying to figure out where my list of expenses would best fit.

qbteachmt
Level 15

IRS EXPENSE CATEGORIES THAT MATCH UP WITH INTUIT'S LIST

Only a C Corp has its own Charitable Expense. The rest of us have it on the 1040. Don't mix the tax form provisions for Business and Personal. Use your Tax form, such as 1065 or 1120S or Sched C. Not "IRS list" but your specific Business tax filing form.

 

 "Auto" also is suspicious. You didn't tell us the tax entity type or who Owns this auto.

 

The Meals and Entertainment rules are significantly reduced; have you reviewed the Dec 2017 tax law changes from the TCJA? If you intend to do your own entries, you need Tax Rule guidance for what applies and what does not.

 

Most small businesses also do not have a Tax expense; C Corps pay their own income tax. The rest of the entities, there is no Tax owed for the entity. Some States, such as California, have a business tax, of course. Again, this depends on the entity type of your business operation.

 

And there is Never something called Uncategorized or Ask My Accountant; that is an Intuit programming provision that you didn't need to know what you Should be doing. That doesn't exist, in real life. The IRS won't accept Uncategorized.

 

You also have a lot that is related to Occupancy, and we don't know enough about this business to be helpful here, either.

SteveIBrown
Level 1

IRS EXPENSE CATEGORIES THAT MATCH UP WITH INTUIT'S LIST

Thanks! Sorry for being cryptic. Unintentional. I have a LLC set up as a partnership. I am using a Quickbooks template created by Mike Butler for real estate investors. I guess  I just don't like using "Other Deductions" when it comes to the IRS. I was just trying to find places to put expenses that is not "other". So maybe some advice on where to put them in the "Other Deductions - Attachment", if any advice is needed.

salaries
partner payments
repairs/maintenance
bed debts
rent
taxes and license
interest
depreciation
depeltion
retirement
employee benefits
other deduction
   Other Deductions explanation
    Amortization.
    Insurance premiums.
    Legal and professional fees.
    Supplies used and consumed in the business.
    Utilities.
    Certain business startup and organizational costs.

SteveIBrown
Level 1

IRS EXPENSE CATEGORIES THAT MATCH UP WITH INTUIT'S LIST

Thanks! Sorry for being cryptic. Unintentional. I have a LLC set up as a partnership. I am using a Quickbooks template created by Mike Butler for real estate investors. I guess  I just don't like using "Other Deductions" when it comes to the IRS. I was just trying to find places to put expenses that is not "other". So maybe some advice on where to put them in the "Other Deductions - Attachment", if any advice is needed.

salaries
partner payments
repairs/maintenance
bed debts
rent
taxes and license
interest
depreciation
depeltion
retirement
employee benefits
other deduction
   Other Deductions explanation
    Amortization.
    Insurance premiums.
    Legal and professional fees.
    Supplies used and consumed in the business.
    Utilities.
    Certain business startup and organizational costs.

qbteachmt
Level 15

IRS EXPENSE CATEGORIES THAT MATCH UP WITH INTUIT'S LIST

Keep in mind:

 

A number of Resources completely overlook how you should be using Items, not more Accounts, to track activities. Examples: One Account is for Repair Costs; but Service Items that all link there, for your tracking and reporting needs, might include Plumber and Electrician and whatever matters to your tracking and reporting expectation.

 

You stated LLC. There is no Expense for: Salaries, Partner Payments, Retirement, Employee benefits. You don't have Employees. You told use there are 1099 Independent Contractors. And the partners take Draws from Equity; that is not Expense and no partner gets a Salary unless this LLC has elected to be treated as a corporation.

 

The question of what you call Business Gifts needs to be run past your CPA; it seems like this, and charity, and some other entries are your attempt to pass personal costs into the partnership. You need to learn what qualifies for business. Using business funds does not turn something into a Business-related activity.

 

And the CPA you consult with needs to help you understand the difference between Expense and Expenditure. For instance, your concept of "start up" costs will need to be evaluated for how the tax regulations apply to what you spent. Expenditures can be "expense account" or "balance sheet account" activities.

 

Not everything posts to the P&L; and not everything from Business Banking then is defined as Business, unless you restrain yourself to Proper and specific Business-only activities. That's why your question is a tax rule guidance topic, not a QB topic.

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