Schedule C or 8829?

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  • emmajo
    Daycare.com Member
    • Sep 2011
    • 50

    Schedule C or 8829?

    On which form do I deduct items like computer monitor, office chair, etc that I will be using time/space percentage on? There's the spot on C for office things but how would I do the percentage on C? How would IRS know I'd used it? OR should all those things go on 8829 - maybe line 21 other expenses, indirect? I'm a little confused! Thanks!
  • TomCopeland
    Business Author/Trainer
    • Jun 2010
    • 3062

    #2
    Tax form

    Originally posted by emmajo
    On which form do I deduct items like computer monitor, office chair, etc that I will be using time/space percentage on? There's the spot on C for office things but how would I do the percentage on C? How would IRS know I'd used it? OR should all those things go on 8829 - maybe line 21 other expenses, indirect? I'm a little confused! Thanks!
    Items that cost more than $100 and are being depreciated should be entered on Form 4562 and then transferred to Schedule C, line 13.

    When entering expenses directly onto Schedule C (supplies, toys, etc.) that you are using for both business and personal purposes, calculate the business deduction by multiplying the cost of each item by your time-space % and put the result on Schedule C. Your time-space % is calculated on Form 8829.

    When entering house expenses onto Form 8829, put them in column b (indirect) because they will then be multiplied by your time-space %.
    http://www.tomcopelandblog.com

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    • emmajo
      Daycare.com Member
      • Sep 2011
      • 50

      #3
      Thank you, Tom!

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