What are the IRS definitions of supply expenses versus office expenses? Is toner and printer paper supply or office?

Forum|Forum|1 year ago
March 9, 2025
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Best answer by MinhT1

Supplies are items necessary to the operation of your business. They need to be refilled or replaced. Toner, printer paper, pens, staples, janitorial products are office supplies.

Office expenses are costs related to the operation of your business. These include items such as web site services, computer software, domain names, employee cellphones, etc.

MinhT1Answer

Supplies are items necessary to the operation of your business. They need to be refilled or replaced. Toner, printer paper, pens, staples, janitorial products are office supplies.

Office expenses are costs related to the operation of your business. These include items such as web site services, computer software, domain names, employee cellphones, etc.

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pk12_2

Employee

@carolinejq2 , agreeing with answer from my colleague @MinhT1 , I will just refer you to the instructions for Schedule-C -- line 22

(a) Note that it notes that supplies used for the production/prep./ sale may go under COGS;

(b)

Line 22

In most cases, you can deduct the cost of materials and supplies only to the extent you actually consumed and used them in your business during the tax year (unless you deducted them in a prior tax year). However, if you had incidental materials and supplies on hand for which you kept no inventories or records of use, you can deduct the cost of those you actually purchased during the tax year, provided that method clearly reflects income.

You can also deduct the cost of books, professional instruments, equipment, etc., if you normally use them within a year. However, if their usefulness extends substantially beyond a year, you must generally recover their costs through depreciation.

I hope I am not muddying the water more