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Other deductions? Form 1065

 
 
sistercheng@yahoo.com
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      03-29-2005, 10:32 PM
Hi All,

I have a simple question for you but not simple for
me(conceptually confused).

Where should I put the following expense on Form 1065

1) Internet hosting fee(we are an internet retailer)
2) Travel & Meal etc.
3) Tools, supplies. etc.
4) Credit Card processing fee, transaction fee.

None of these should be counted as "cost of good sold",
right? Then I can not find anywhere else on the Form 1065
except in Deduction section"line 20: other deductions". It
has a note "attach statement", what kind of statement is
acceptable for this purpose? How much detail has to be put
in there?

Thanks for your suggestions

April

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Paul A Thomas
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      04-01-2005, 06:49 AM
<(E-Mail Removed)> wrote

> I have a simple question for you but not simple for
> me(conceptually confused).
>
> Where should I put the following expense on Form 1065
>
> 1) Internet hosting fee(we are an internet retailer)
> 2) Travel & Meal etc.
> 3) Tools, supplies. etc.
> 4) Credit Card processing fee, transaction fee.
>
> None of these should be counted as "cost of good sold",
> right?


It's ~possible~ that you could look at the credit card
charges as a "cost of goods sold" as you wouldn't incur
those charges without the sale, but in practice it is
probably more common to take them with "other deductions"
and the other bank charges (which you would have even
without the sales).

> Then I can not find anywhere else on the Form 1065
> except in Deduction section"line 20: other deductions". It
> has a note "attach statement", what kind of statement is
> acceptable for this purpose? How much detail has to be put
> in there?


Create a list with a description and the amount. The total
of which goes to Line 20.

Create the header with the business name and tax ID number,
and "Form 1065" and the year.

Remember that only 1/2 the meals and entertainment are
deductible.

--
Paul A. Thomas, CPA
Athens, Georgia
taxman at negia.net

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Thomas Healy
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      04-01-2005, 07:47 AM
"(E-Mail Removed)" <(E-Mail Removed)> wrote:

> I have a simple question for you but not simple for
> me(conceptually confused).
>
> Where should I put the following expense on Form 1065
>
> 1) Internet hosting fee(we are an internet retailer)
> 2) Travel & Meal etc.
> 3) Tools, supplies. etc.
> 4) Credit Card processing fee, transaction fee.
>
> None of these should be counted as "cost of good sold",
> right? Then I can not find anywhere else on the Form 1065
> except in Deduction section"line 20: other deductions". It
> has a note "attach statement", what kind of statement is
> acceptable for this purpose? How much detail has to be put
> in there?


All of them go on line 20. "Schedule" is a fancy name for
"list." If you are preparing the return by hand (rarely a
good idea), a hand-written list that is stapled to the
return will do. I will usually group similar expenses in one
line of the list - for example, various office expenses are
represented by one line. If something is "large" I'll list
it separately.

Just remember that only 50% of the meals portion goes on
line 20. The rest goes on Schedule M.

--
Tom Healy, CPA
Boulder, CO
Web: http://www.tomhealycpa.com

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