Category misclassified

RGCRCL

I added a Business Expense Category but it is showing in the Personal Expense Category List and not showing up on my Business P&L. I deleted it and tried adding it again and it continues to show up as a Personal Category. I then tried adding the Category again from the Business Expense category list and it continues to show up in the Personal Expense Category. Help!

Chris_QPW

You need to assign the business expense a tax line of Schedule C.

volvogirl

This is a common question. 

One thing I like to tell business people when starting out is...

For an income or expense category to show up under Business you have to assign it a Schedule C tax line number. Go into Edit Category and assign it one.  

If you need to see a schedule C, here's the blank form….

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

You can either assign the tax line number to an existing category or you might want to set up a new category for it to keep the existing one under personal if you have the same expense for both personal and business.

To check the tax line assignment open the Category list by either clicking on the Category Icon or go to Tools-Category List or Ctrl+Shift+C.  Then select the category and right click on it to Edit it.  Click on the Tax Reporting Tab and check the box for Tax related and pick a Schedule C: tax line item.

NotACPA

Actually, Schedule E (Rental Property) and Schedule F (Farm) tax lines are "Business" also, not just Sched C