What's the difference between ''office supply,'' ''office expense,'' and ''business expense''
I am setting up my accounting software. For tax purposes, what is the
difference between office supplies, office expenses, and business
expenses? For example, how should l categorize the flowers l buy to
decorate the office? l also use small kitchen appliances in my
work. l do not wanna go through the hassle of depreciating them since they
do not last very long and l use too many of them to do section 179
depreciation. How should l categorize the appliances?
office supplies- paper, clips, ink pens etc.
office expense- lights, water, phone, gas etc. things that can not be
returned or counted as an asset
Business expense- plane tickets, limo service for customer, dinner for
customer etc.
From my experience working with H&R Block, if you are dreaming
up an in-the-home office, ur chances of getting audited will be improved
greatly.
Business expenses are tax deductible if you are either working for a
genuine business & must entertain/travel as a requirement..or you maintain
an ongoing business & tally up all ur expenses so you have proof at the end of the year. Office expenses are all cost related expenses of doing business, but you must be sure which ones are tax deductible. This is a rough description, check with I.R.S. for clarity.
Office Supplies = copy paper, envelopes, white out, supplies
are things that you use up, things that run out. Ink pens, toner.
Office Expense = coffee, flowers, bottled water. Things you need to use
that are not really supplies.
Business Expense = usually when you travel, dining out, food, car rental
and refreshments for meetings you have in-house
Windsor Hills Resort
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