Personal property tax on business equipment belongs on Line 23, taxes and licenses.
Why line 23
Personal property tax assessed on business assets, the annual tax many counties charge on equipment, fixtures and machinery, is deductible on line 23. It is a tax on holding the asset and is separate from recovering the asset's cost, which happens through depreciation. Tax on personal use property is not deductible here, so an asset used partly privately only gives you the business share.
Stop looking up lines one at a time. ClaryBook totals your year into an IRS Schedule C worksheet in form order, Part I and Part II line by line, so personal property tax on business equipment lands on Line 23 without you sorting it.
Start for freeWhat personal property tax on business equipment is confused with
- Line 13, depreciation and section 179 expense deduction
- The annual tax on holding the equipment is line 23, while the cost of the equipment itself is recovered through depreciation on line 13.
- Line 9, car and truck expenses
- A value based tax on a business vehicle is reported with car and truck expenses on line 9 rather than line 23.
- Schedule A, schedule a, personal itemised deduction
- Personal property tax on household items is a Schedule A itemised deduction at best, not a Schedule C expense.
Examples that belong on line 23
- $640 of county business personal property tax on shop equipment
- $285 on a list of office furniture and computers
- $1,120 on machinery at a small production unit
- $95 on a leased copier the county assessed to you
- $340 on tools and fixtures, with a $0 deduction for the privately used items on the same list
What does not belong here
- Personal property tax on household belongings.
- A value based tax on a business vehicle, which goes with line 9.
- The equipment's purchase cost, which is depreciation.
- A penalty for filing the property return late.
What to keep
Keep the assessor's notice, the asset list you filed and the payment record. The filed list is also useful evidence of what assets the business held that year.
Other expenses on line 23
| Expense | Line |
|---|---|
| a city or county business license | Schedule C, Line 23 |
| a state franchise tax or LLC annual fee | Schedule C, Line 23 |
| a state professional license renewal | Schedule C, Line 23 |
| employer payroll taxes and the employer half of FICA | Schedule C, Line 23 |
| federal and state unemployment tax | Schedule C, Line 23 |
| real estate property tax on a business building | Schedule C, Line 23 |
| sales tax you collected and remitted | Schedule C, Line 23 |
Related lookups
- Where does capex go on Schedule C?
- Where does business mileage go on Schedule C?
- Where does state income tax go on Schedule C?
Sources
This page explains how Schedule C lines work. It is general information, not tax advice for your situation. If an expense is large or the answer turns on a fact about your business, confirm it with your tax preparer.
Looking for a different expense? The full Schedule C line lookup has every line from 8 to 27 with the expenses that belong on each, and Schedule C expense categories walks the whole form in order.
Stop looking up lines one at a time. ClaryBook totals your year into an IRS Schedule C worksheet in form order, Part I and Part II line by line, so personal property tax on business equipment lands on Line 23 without you sorting it.
Start for free