Line 21 on Schedule C of the tax form relates to “Repairs and Maintenance,” which refers to the cost of maintaining and repairing assets used in your business.
Repairs and maintenance expenses that you may be able to deduct on Line 21 include:
- Repair and maintenance of equipment: This includes the cost of repairs and maintenance performed on machinery, computers, and other equipment used in your business.
- Repair and maintenance of buildings: This includes the cost of repairs and maintenance performed on the building or buildings used in your business, such as repairs to the roof, plumbing, or electrical systems.
- Repair and maintenance of vehicles: This includes the cost of repairs and maintenance performed on vehicles used in your business, such as oil changes, brake repairs, and tire replacements.
It’s important to note that there are certain requirements and limitations associated with deducting repairs and maintenance expenses. For example, the expenses must be ordinary and necessary for your business, and you must keep accurate records of the expenses, including receipts, invoices, and other documentation.
If you have any questions about how to report repairs and maintenance expenses on your tax return, it’s a good idea to consult with a tax professional or accountant.