Is it possible to mark a business expense as not tax deductible? I already wrote an expense in my 2019 taxes, but I am still paying off the credit I used to buy it.
To be more specific, lets say the item was around $3,000, I chose to take deductions over the next few years instead of all at once because it was my first year in business. However, I paid for the item with a credit card and I am still making payments every month from my business account. To my knowledge it would be tax fraud to deduct the credit card payments since I have already deducted the amount before. But if I just "exclude" the amount, then QB does not calculate my profit correctly. How can I exclude this from deductions, but not from my expenses?
Thanks for getting back to us about your concern. The posting of your transactions to the tax reports may differ depending on the type of expense and the category used when you add the entry in QuickBooks Self-Employed.
The system uses different categories to determine whether a transaction shows in the Profit and Loss, Tax Summary Report or Tax Details Report. You will see more about this information in the Learn how Schedule C categories appear on reports section of the linked article.
Another option if you're using TurboTax Bundle, is you can add a note that this entry is non-deductible, and you can request our agents to help you exclude it when filing your estimated taxes. Reach out to our support team for any help related to tax calculations and filing concerns.
In the meantime, here are some links to help you prepare your tax returns in QuickBooks Self-Employed: