Business Code for Construction Permitting Company

Forum|Forum|3 years ago
April 2, 2023
1 reply
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I am trying to find the correct category for my business. I have tried other types and it doesn't seem to give me the correct options for my deductions. I pay permitting fees but then I am reimbursed by my clients. I don't seem to be credited in full when I list these as deductions. My question is either what would my correct business code be or what should I list these under to received 100% credit, and is there a dollar amount limitation for the credit?

TurboTax Business Windows

PatriciaV

Employee

No, there is no limit for your business deductions, regardless of what business code you choose. Although the IRS doesn't use the business code for anything other than statistics, you must enter a valid code in order to e-file your return. Here is a link to the NAICS Website, which is updated every 5 years; 999999 is the default if you can't find a specific code to match your business.

If the business expenses list doesn't include the exact description you need, enter the cost of permit fees under "Other Expenses" using a custom description. Where you report your expenses is not as important as reporting each expense only once.

The "reimbursements" from your customers would be included as income for your business. Enter these payments under the Business Income section, not under expenses/deductions.

For more info, see Where do I enter my self-employment business expenses?

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