Schedule C Expenses

Legal and Professional services

Legal and Professional services (line 17) include fees for tax advice and tax preparation. Only the cost of preparing business forms such as Schedule C, Schedule SE, Form 4562 and Form 8829 can be deducted here. The cost of preparing other forms should be deducted on Schedule A. You can also deduct any legal fees relating to business matters.

Office expense

Office expense (line 18) includes the cost of office supplies such as paper, toner, and postage. Office expense can also include the cost of snow removal, lawn care and a cleaning service.

Pension and profit sharing plan

Pension and profit sharing plan contributions (line 19) you make for your employees are deductible. Enter your deduction for contributions to a pension, profit sharing, or annuity plan or plans for the benefit of your employees.

Contributions to such plans for your own benefit cannot be deducted on Schedule C. However, you may be able to take these contributions as an adjustment on line 28 of Form 1040.

Rent or lease

Rent or lease (line 20) of a vehicle, machinery, or equipment for the business can be deducted on line 20a. If you leased a vehicle for a term of 30 days or more, you may have to reduce your deduction by an amount called an inclusion amount. Other rental payments such as for office space, storage or other real property leases are entered on line 20b.

Repairs and maintenance

Repairs and maintenance (line 21) include costs of labor, supplies and other items that you spend for repairs and maintenance that do not add to the value or increase the life of the property. Do not deduct the value of your own labor. Do not deduct amounts spent to restore or replace property; these must be capitalized.

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