How do i catergorize expense for porta potties

[havetool]

We rent porta potties for our construction business.  Does this expense go under equipment rentals?

[Critter]

That would be fine .

[magnum592]

So, are the port a potty vendors, classified as "subcontractors" then. Like would they be included in the list of subcontractors when you do the annual business tax returns, because in qb, equipment rental is not a sublist of subcontractors?

anne

[KurtL1]

You would not consider the vendors form who you rent the Porta Potties a subcontractor. They are similar to your other vendors with whom you do business.

A Subcontractor is a person or company who is awarded a portion of an existing contract by a principal or general contractor. The subcontractor performs work under a contract with a general contractor, rather than the employer who hired the general contractor. 

[accounting_rcanc_us]

I'm sorry, but I do not see the actual answer.  How do I categorize expense for rental of porta potties in QB's?  I am very new to QuickBooks and do not know what the Category and Class should be.  Can you help?

[Mike9241]

as a business expense, equipment rental sounds good to me. however, if you have never run a business before, I would suggest that you use a tax pro the first year. there are many tax traps and erring in the first year can be costly.  

if te category doesn't exist in QB and you don't know how to add one.  contact the QB forum through that app

[Carl]

I don't know if you have QB set up for a SCH C business, or a 1065 partnership/multi-member LLC. But for SCH C in QB, porta potty rental would fall under equipment rentals and be assigned to line 20a of the SCH C. For me in QB 2018 it shows as "Rent/Lease Other Business Property".

[MarcelaA]

I  have the same question. In my case, I categorized mine as Equipment Rental and I included it in COGS given that the portapotty is assigned to a construction site with a single-family residential project. If the portapotty was used for an office that services multiple construction sites, or a construction site with multiple units that sell independently, then I'd categorize it as an indirect expense and I would not include it in COGS. I am not an accountant though, so 1) take this with a grain of salt and 2) if someone thinks this is wrong, please let us know! 

[PatriciaV]

At best, a portapotty is an indirect labor expense that wouldn't normally remain with the finished product (so not COGS). It is rental equipment, however, and would be reported as a business expense. Where you report your business expenses on your tax return is a matter of opinion, as long as you don't report that expense twice.