Special Expenditures for Self-Employed Business Expenses?
Which of the following statements is correct and/or needs to be clarified?
Use the Special Expenditures screen:
- Only for personal expenditures. Do not use it for any business-related ones.
- If you are self-employed and not incorporated, then do list significant special expenditures.
This is the situation that triggered the question: I am a sole proprietor. I plan to pay cash for a car for business use, and then to depreciate the car.
A $25,000 (or more) cash payout is pretty significant, so it seems like I should:
- Enter the car purchase into ESPLanner.
- Ignore the fact that I will depreciate the car because those numbers are accounted for in Self-Employed Earnings (assuming that Self-Employed Earnings are supposed to be entered as net profits and not gross receipts).
Thank you in advance for clearing the cobwebs.