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When reporting deductible business expenses on Schedule C, can you include sales tax as part of the overall price of an item?

 I know you can choose to include sales tax as part of your itemized deductions on Schedule A. But if it's more advantageous to go with the Standard Deduction in your case, is it still ok to include sales tax as part of the overall price of a business expense on Schedule C?
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MinhT1
Expert Alumni

When reporting deductible business expenses on Schedule C, can you include sales tax as part of the overall price of an item?

Yes.

 

When you enter your business expenses on Schedule C, you enter them, sales tax included (if you paid the tax to the supplier).

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2 Replies
MinhT1
Expert Alumni

When reporting deductible business expenses on Schedule C, can you include sales tax as part of the overall price of an item?

Yes.

 

When you enter your business expenses on Schedule C, you enter them, sales tax included (if you paid the tax to the supplier).

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

When reporting deductible business expenses on Schedule C, can you include sales tax as part of the overall price of an item?

sales tax on buusiness expenses is never reportible on schedule A. that can include sales tax of say a vehicle. but if the use isn't 100% business then the personal portion can go on schedule A for major items. 

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