Schedule C - Utliities Line 25

2 replies
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Anyone know what rules must be followed to figure out how much to deduct for utilities on Schedule C, Line 25.

LudwigVan_fanAnswer

Alumni - Champ

Not really sure what you are asking. This is from the instructions for Sch C, line 25

Line 25

Deduct utility expenses only for your trade or business.

Local telephone service.

If you used your home phone for business, do not deduct the base rate (including taxes) of the first phone line into your residence. But you can deduct any additional costs you incurred for business that are more than the base rate of the first phone line. For example, if you had a second line, you can deduct the business percentage of the charges for that line, including the base rate charges.

Are you wondering about if the utilities are mixed between home and business? Is this a home day-care? There are rules for home day-cares.

Here is a link to Publication 587, Business Use of Your Home

https://www.irs.gov/pub/irs-pdf/p587.pdf

**Disclaimer: Effort has been made to offer correct information; but due to the discussion forum limitations, the poster disclaims any legal responsibility for the accuracy of the poster's response**

LudwigVan_fan

Answer

Alumni - Champ

Not really sure what you are asking. This is from the instructions for Sch C, line 25

Line 25

Deduct utility expenses only for your trade or business.

Local telephone service.

Are you wondering about if the utilities are mixed between home and business? Is this a home day-care? There are rules for home day-cares.

Here is a link to Publication 587, Business Use of Your Home

https://www.irs.gov/pub/irs-pdf/p587.pdf

**Disclaimer: Effort has been made to offer correct information; but due to the discussion forum limitations, the poster disclaims any legal responsibility for the accuracy of the poster's response**

rogo2020Author

Level 3

I had previously responded and am replacing this in case anyone else needs this info.

The link you provided actually explained this in more detail, so it's exactly what I needed! Thank you.

Here it is for those who need it:

Utilities and services. Expenses for utilities and services, such as electricity, gas, trash removal, and cleaning services, are primarily personal expenses. However, if you use part of your home for business, you can deduct the business part of these expenses. Generally, the business percentage for utilities is the same as the percentage of your home used for business.