Tax Deductions – How to classify LLC business expenses?
A business hosting question:
As an website host, under what section is the best place to claim our web hosting costs for the business. For instance, servers, bandwidth, etc. What is the best way to describe these expenses?
Do company internet, phone, and fax expenses get classified under Telephone Fee’s and charges – or should they be broken out?
To clarify, these expenses are about 1/4th of our total revenue.About K of K.
54 Computer Server and Internet Bandwidth
23 Phone, Fax, and Internet ServicesIt seems important for us to classify these right.
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Feel free to leave your comment in the box below.
You can call it just that – website hosting expenses.
As for the other expenses, you can lump all the phone expenses together. There is no need to be so detailed.
You can provide as much detail as you want however.
If you are sole owner of LLC you list your expenses on Schedule C. Lots of categories and a place to write in items.
If you have partners in LLC.. You use form 1065 for LLC and list expenses . If no place to list make an expense statement and put items on line 20.
If the servers are leased, I would list them as leased equipment expense, if they are being purchased, you may have to depreciate them . I would call telephone what it is . Monthly fees for bandwith could be listed under dues and subscriptions .