Expense Categories for IRS?

Discussion in 'Lawn Mowing' started by -, Feb 17, 2001.

  1. Guest
    Posts: 0

    Could someone please list for me the expense categories that the IRS wants for accounting purposes (ie Advertising, Office Expenses, Rent... ect.)? Are they the same as Schedule C expenses (we are a S Corp.)?

    Also, where does one list gasoline expenses for your mowers and 2-cycle equipment? Not under auto expenses I'd assume.

    Thanks in advance for the help.
     
  2. Dennis

    Dennis LawnSite Member
    from Ga.
    Posts: 155

    I made a 4 digit account # for all exp.
    EX. 2010= equip. gas/oil
    2020= parts
    2030= chemicals etc.
    The IRS does not really care how you show it, as long as you have proof. it is just easier to keep up with for you and your accountant.
     
  3. BRL

    BRL LawnSite Bronze Member
    Posts: 1,211

    Gas for the mowers etc. goes under Fuel. The list of accounts can be too long to post here & probably varies with everyone. Dennis' comment is right on, if you incurred an expense you post it. This is a question best answered by your accountant, so that all of your costs are covered correctly.
     
  4. Guest
    Posts: 0

    On the Schedule C it requires that you list your expenses in different categories. Not all expenses are the same when it comes to deduction (ie. some expenses you can only wrtie off a certain % of the expense). I just don't know all the categories.
     
  5. GroundKprs

    GroundKprs LawnSite Bronze Member
    Posts: 1,969

    You should be tracking your expenses to monitor the progress and management of your business, not just to fill in a tax form. The numbers for taxes are just culled from your different expense categories. If you really care enough to do it right, it's time to go to a good accountant.
     
  6. BRL

    BRL LawnSite Bronze Member
    Posts: 1,211

    This exactly why I said to check with your accountant. The list is too long for me to type here. Are you using any accounting software? That would help greatly as most of them have the chart of accounts to work with at least. From there, I would let the accountant help you with what percentages of which expenses are deductable, specifically for your situation.
     
  7. BRL

    BRL LawnSite Bronze Member
    Posts: 1,211

    This exactly why I said to check with your accountant. The list is too long for me to type here. Are you using any accounting software? That would help greatly as most of them have the chart of accounts to work with at least. From there, I would let the accountant help you with what percentages of which expenses are deductable, specifically for your situation. There may be answers to your questions at the IRS Small Business Corner web site.
    http://www.irs.gov/bus_info/sm_bus/

    Get the free CD-ROM offered there. Someone posted here a while ago that there was a lot of good information on it.
     

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