Turn on suggestions
Auto-suggest helps you quickly narrow down your search results by suggesting possible matches as you type.
Showing results for
A couple of things I’m looking for l clarity on:
1. Can I categorize the entire transaction of a monthly bill as a business expense (as opposed to having to “split” the transaction in my books)? Then, come tax time, I’d write it off with my home office deduction, which would effectively calculate the business-use percentage.
2. Or, do my books need to reflect the business usage vs. personal usage from the get-go?
3. Also, what’s the difference between reporting internet bill on schedule C or with home office deduction?
Hello there, jazabellecc.
Recording the internet bill depends on when you'll pay it. I'm here to share more information about it.
If you've already paid for a business expense, enter it as an expense. On the other hand, if you plan to pay the internet bill in the future, enter it as a bill. I've added this reference as your guide for the steps: Learn the difference between bills, checks, and expenses in QuickBooks Online.
As for categorizing the transactions and reflecting them on the books, I'd suggest reaching out to your accountant so they guide you for the correct accounts to use.
Then Schedule C, allows you to report the income you've generated or lost in your business to the IRS. You can get this information in the Profit and Loss report.
If you've organized the chart of accounts to match schedule C, then the report will provide you with the correct numbers.
I've added these references as an additional guide in managing expenses and taxes:
I'm just around if you need help preparing your taxes.
I can provide you with some general guidance on how to handle claiming your internet bill as a business expense in QuickBooks Online.
Categorizing the Entire Transaction:
Business Usage vs. Personal Usage:
Reporting on Schedule C vs. Home Office Deduction:
To handle this in QuickBooks Online:
Create a New Expense Category:
Enter the Monthly Bill:
Track Business vs. Personal Usage (Optional):
Consider Home Office Deduction (If Applicable):
You have clicked a link to a site outside of the QuickBooks or ProFile Communities. By clicking "Continue", you will leave the community and be taken to that site instead.
For more information visit our Security Center or to report suspicious websites you can contact us here