Page 203 - Individual Forms & Instructions Guide

13:32 - 25-Jan-2023
Page 16 of 20 Fileid: … /i1040schc/2022/a/xml/cycle07/source
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
Line 33 mation about what records you must debt, include it as income in the year
keep, see Pub. 463.
collected. For details, see chapter 10 of
Your inventories can be valued at cost, Pub. 535.
the lower of cost or market, or any other You may maintain written evidence Business startup costs. If your busi-
method approved by the IRS. by using an electronic storage system ness began in 2022, you can elect to de-
that meets certain requirements. For duct up to $5,000 of certain business
Line 35 more information about electronic stor- startup costs. The $5,000 limit is re-
age systems, see Pub. 583.
If you are changing your method of ac- duced (but not below zero) by the
counting beginning with 2022, refigure amount by which your total startup costs
last year's closing inventory using your Part V. Other exceed $50,000. Your remaining startup
new method of accounting and enter the costs can be amortized over a
result on line 35. If there is a difference Expenses 180-month period, beginning with the
between last year's closing inventory month the business began.
and the refigured amount, attach an ex- Include all ordinary and necessary busi- For details, see chapters 7 and 8 of
planation and take it into account when ness expenses not deducted elsewhere Pub. 535. For amortization that begins in
figuring your section 481(a) adjustment. on Schedule C. List the type and amount 2022, you must complete and attach
For details, see the example under Line of each expense separately in the space Form 4562.
F, earlier. provided. Enter the total on lines 48 and Deduction for removing barriers to
27a. Do not include the cost of business individuals with disabilities and the
equipment or furniture; replacements or elderly. You may be able to deduct up
Part IV. Information permanent improvements to property; or to $15,000 of costs paid or incurred in
on Your Vehicle personal, living, and family expenses. 2022 to remove architectural or trans-
Do not include charitable contributions.
portation barriers to individuals with
Also, you cannot deduct fines or penal- disabilities and the elderly. However,
Line 44b ties paid to a government for violating you cannot take both a credit (on Form
any law. For details on business expen- 8826) and a deduction for the same ex-
In most cases, commuting is travel be- ses, see Pub. 535. penditures.
tween your home and a work location. If Amortization. Include amortization in
you converted your vehicle during the this part. For amortization that begins in De minimis safe harbor for tangible
year from personal to business use (or 2022, you must complete and attach property. Generally, you must capital-
vice versa), enter your commuting miles Form 4562. ize costs to acquire or produce real or
only for the period you drove your vehi- tangible personal property used in your
cle for business. You can amortize such costs as: trade or business, such as buildings,
• The cost of pollution-control fa- equipment, or furniture. However, if you
Travel that meets any of the follow- cilities; elect to use the de minimis safe harbor
ing conditions isn't commuting. • Amounts paid for research and ex- for tangible property, you may deduct de
• You have at least one regular work perimentation; minimis amounts paid to acquire or pro-
location away from your home and the • Amounts paid to acquire, protect, duce certain tangible property if these
travel is to a temporary work location in expand, register, or defend trademarks amounts are deducted by you for finan-
the same trade or business, regardless of or trade names; or cial accounting purposes or in keeping
the distance. Generally, a temporary • Goodwill and certain other intangi- your books and records.
work location is one where your bles. If you have an applicable financial
employment is expected to last 1 year or In most cases, you cannot amortize statement, you may use this safe harbor
less. See Pub. 463 for more details. real property construction period interest to deduct amounts paid for tangible
• The travel is to a temporary work and taxes. Special rules apply for allo- property up to $5,000 per item or in-
location outside the metropolitan area cating interest to real or personal proper- voice. If you don't have an applicable fi-
where you live and normally work. ty produced in your trade or business. nancial statement, you may use the de
• Your home is your principal place minimis safe harbor to deduct amounts
of business under section 280A(c)(1)(A) For a complete list, see the instruc- paid for tangible property up to $2,500
(for purposes of deducting expenses for tions for Form 4562, Part VI. per item or invoice.
business use of your home) and the At-risk loss deduction. Any loss from
travel is to another work location in the this business that was not allowed last Only deduct these amounts as other
same trade or business, regardless of year because of the at-risk rules is trea- expenses. Don't include these amounts
whether that location is regular or ted as a deduction allocable to this busi- on any other line.
For details on making this election
temporary and regardless of distance. ness in 2022. and requirements for using the de mini-
Line 47 Bad debts. Include debts and partial mis safe harbor for tangible property,
debts from sales or services that were in-
Specific recordkeeping rules apply to cluded in income and are definitely see chapter 1 of Pub. 535.
car or truck expenses. For more infor- known to be worthless. If you later col- Energy efficient commercial buildings
lect a debt that you deducted as a bad deduction. You may be able to deduct

C-16