Tax Strategies for the Small Business Owner by Russell Fox

Tax Strategies for the Small Business Owner by Russell Fox

Author:Russell Fox
Language: eng
Format: epub
Publisher: Apress, Berkeley, CA

Figure 11-2Form 1065 (page I)

Figure 11-3Form 1120 (page I)

Figure 11-4Form 1120S (page I)

On each of these forms is a line labeled “Other Expenses” (Schedule C, line 27a) or “Other Deductions” (Form 1065, line 20; Form 1120, line 26; and Form 1120S, line 19). This is where bank charges and any “other expense” or deduction without a dedicated line on an IRS form is placed.


Using “other expenses” on a Schedule C can lead to an audit. One of the factors used by the IRS to select individual tax returns for examination (audit) is high amounts of other expenses on Schedule C. If at all possible, you should try to avoid large dollar amounts of other expenses. This is not a major issue with business entities filing a Form 1065, Form 1120, or Form 1120S. As noted later in this chapter, you should use Office Expense for many of the charges you would consider as other expenses.


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