TAXMAN Posted November 19, 2015 Report Share Posted November 19, 2015 I have a TP who makes a good # in his sch c business in legal(not lawyer style work). However TP decided in 2011 to also go into the Herbal Medicine business. Opened doors in 2011 made some $ and had some start up expenses which he amortized. Had a loss in 2011. In 2012 TP didn't sell as much but still had all the connected exp ie rents, phones, advert, business license, inventory tax etc. TP also bought Extractors and distillers for this business. My real question is what do I do with education and training expenses incurred in 2012 in this field of Herbal Medicines? BTW TP has not filed 2012. In looking ahead it appears TP shut this operation down in 2013 due to lack of sales. Any help in this matter is appreciated. Quote Link to comment Share on other sites More sharing options...
mcb39 Posted November 19, 2015 Report Share Posted November 19, 2015 If there is training and education involved in any business (including my own); I create a category under Other Expenses called Education. 1 Quote Link to comment Share on other sites More sharing options...
Lion EA Posted November 19, 2015 Report Share Posted November 19, 2015 Same. In fact, I label it Continuing Education. 2 Quote Link to comment Share on other sites More sharing options...
mcb39 Posted November 19, 2015 Report Share Posted November 19, 2015 I also use the word "Continuing" Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted November 19, 2015 Report Share Posted November 19, 2015 I had a Sch C audit this year and the IRS wanted travel and meals from page 1 of Sch C, and everything under Other on page 2. Made me think of ways to fit expenses on page 1 of the return. The kicker? They didn't ask about mileage, at all. 3 Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted November 19, 2015 Report Share Posted November 19, 2015 7 minutes ago, jmdaviscpa said: I had a Sch C audit this year and the IRS wanted travel and meals from page 1 of Sch C, and everything under Other on page 2. Made me think of ways to fit expenses on page 1 of the return. The kicker? They didn't ask about mileage, at all. Low hanging fruit... Quote Link to comment Share on other sites More sharing options...
RitaB Posted November 19, 2015 Report Share Posted November 19, 2015 30 minutes ago, jmdaviscpa said: They didn't ask about mileage, at all. This continues to be the most amazing thing to me. I didn't take a guy in the summer because he drove 1135 miles a week to earn $800. Bet he got away with it, too. Most abused "expense" in the history of the universe. 2 Quote Link to comment Share on other sites More sharing options...
Don in Upstate NY Posted November 20, 2015 Report Share Posted November 20, 2015 21 hours ago, jmdaviscpa said: I had a Sch C audit this year and the IRS wanted travel and meals from page 1 of Sch C, and everything under Other on page 2. Made me think of ways to fit expenses on page 1 of the return. The kicker? They didn't ask about mileage, at all. Trivia note - the details that you list under "Other Expenses" on page 2 do NOT get transmitted to the IRS as part of the E-file. 3 Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted November 20, 2015 Report Share Posted November 20, 2015 1 hour ago, Don in Upstate NY said: Trivia note - the details that you list under "Other Expenses" on page 2 do NOT get transmitted to the IRS as part of the E-file. Wow, that's insane. No wonder they want to audit it. Jeez, I just went back and looked at the original audit letter and they HAD ask for all Sch C expenses but I didn't notice that check mark. We sent then NOTHING for from page expenses except travel and meals and they didn't say a word. They must be so swamped right now that they triage audit responses and if their gut tells them they can't get any money, they just close the audit. Wow. Quote Link to comment Share on other sites More sharing options...
Max W Posted November 22, 2015 Report Share Posted November 22, 2015 " Trivia note - the details that you list under "Other Expenses" on page 2 do NOT get transmitted to the IRS as part of the E-file " The details are not transmitted, but the Total of Other Expenses is. If it is large enough, it could trigger an audit. The expenses that do get individually transmitted are: Car, Depreciation, Insurance (not health), Legal/prof., Repairs, Travel, Meal, and Wages.. Quote Link to comment Share on other sites More sharing options...
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