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posted Jun 1, 2019 11:10:09 AM

What expense category is Google appengine (cloud computing service)?

What expense category does Google appengine (cloud computing service) go under?

My business develops apps.

So it seems that there should be a difference between a company that has something as a miscellaneous expense. For example, if a company buys drano for their office, it's probably a miscellaneous office expense. However, if the company is a plumbing company and uses it as part of their service, it seems like it should be a different expense. As I develop apps, it's a core business expense for me. Does that change the expense category?

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2 Best answers
Employee Tax Expert
Jun 1, 2019 11:10:11 AM

I hear what you are saying, but the business focus doesn't really change the expense category. The expense categories are just what the IRS has listed on the form schedule C. These are simply the most common expenses that most businesses have.

The form is not tailored for any particular business, so if you have expenses that don't fit in the IRS form categories, then it just gets added to the miscellaneous category. This flows to line 27a as an Other expense. All other expenses are explained on the schedule C in Part V.

I don't think any other expense category would apply for your expense.

https://www.irs.gov/pub/irs-pdf/f1040sc.pdf

Level 2
Apr 21, 2023 9:28:10 AM

Could it be COGs? Cost of goods sold?

 

Goods = Software being developed and sold

Cloud Services = necessary component of that deliver and good?

 

Just wondering?

 

Cheers,
T

2 Replies
Employee Tax Expert
Jun 1, 2019 11:10:11 AM

I hear what you are saying, but the business focus doesn't really change the expense category. The expense categories are just what the IRS has listed on the form schedule C. These are simply the most common expenses that most businesses have.

The form is not tailored for any particular business, so if you have expenses that don't fit in the IRS form categories, then it just gets added to the miscellaneous category. This flows to line 27a as an Other expense. All other expenses are explained on the schedule C in Part V.

I don't think any other expense category would apply for your expense.

https://www.irs.gov/pub/irs-pdf/f1040sc.pdf

Level 2
Apr 21, 2023 9:28:10 AM

Could it be COGs? Cost of goods sold?

 

Goods = Software being developed and sold

Cloud Services = necessary component of that deliver and good?

 

Just wondering?

 

Cheers,
T