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JKCPA
JKCPA, CPA
Category: Tax
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Experience:  CPA with tax experience.
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On Form 1120 what deductions go on line 26?

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On Form 1120, Line 26, Other deductions - What type of schedule need to be attached. Can it be a simple table in a word file ? Hoe much detail is to be provided. For example, for travel expenses, do we need to itemize for air, lodging, meals incidental etc. The income for the C-corporation is less than $300,00. I am wondering, level of details to be provided in the attached schedule. Appreciate if you can answer detailed and provide any examples you have.

Hello,

Thanks for your question.

The statement can be a table in MS Word. The amount of detail is really up to you but it should provide a minimum level of detail broken down by the categories listed in the Form 1120 instructions for Line 26. Other Deductions . For example:

Legal and Professional Fees..........$100.00

For Travel, Meals and Entertainment, you should at least separate the Travel from Meals & Entertainment since the latter is subject to a 50% limitation.

Here is an example of a Form 1120 (see statement 3 for "other deductions").

Hope this helps,

Best regards,

JKCPA and 2 other Tax Specialists are ready to help you
Customer: replied 6 years ago.

Is 1099-Misc paid to independent contractors also should be listed in this shedule?

That depends on the type of work the independent contractors did. If it was repairs/maintenance, it would be listed on line 14.....advertising on line 22....anything to do with your inventory (cost of labor)-Schedule A, line 3. If it was not one of these types of work, you can include as "Other Deductions" on line 26.

Hope this helps,

JKCPA and 2 other Tax Specialists are ready to help you

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