Any advice on best place on Sched C for where to put what seems to be de minimus expense?

Forum|Forum|6 years ago
December 7, 2019
3 replies
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Lacerte Tax

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Best answer by IRonMaN

Client gifts? Or you could simply go with "other" or "miscellaneous".

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EireneAuthor

Level 2

Any advice on the best place on a Schedule C for where to put down what seems to be de minimus expense? My Schedule C client is a daycare provider who spent $200 twice on flowers last year, once to give all mothers on Mother's Day and the second time for children who were "graduating" from pre-school into kindergarten. I'm not quite sure where to put this expense down. Any advice is greatly appreciated. Thanks.

IRonMaNAnswer

Level 15

Client gifts? Or you could simply go with "other" or "miscellaneous".

Slava Ukraini!

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EireneAuthor

Level 2

I've been doing returns for about 7 years and my mentor taught me that putting items under miscellaneous can be red flags and trigger audits. Is that your understanding as well?

abctax55

Level 15

Supplies? Or even in *other expenses*, list as flowers.

And I agree, $ 200 (or even $ 200 x 2 = $ 400) isn't going to raise any red flags.

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