Water, sewer and trash for business premises belongs on Line 25, utilities.
Why line 25
Water, sewer and refuse collection at a business premises are all line 25 utilities, deductible in full. Municipal bills usually arrive as one combined invoice carrying water, sewer, storm water and sometimes a solid waste charge, and the whole thing goes on line 25 without unpicking it. Two things on these bills are not utilities. A charge that is really a property tax or a local assessment is taxes and licenses on line 23, and a dumpster or roll-off hired for a specific construction job is equipment rental, not a utility.
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 water, sewer and trash for business premises lands on Line 25 without you sorting it.
Start for freeWhat water, sewer and trash for business premises is confused with
- Line 23, taxes and licenses
- Metered service and collection charges are utilities on line 25; a storm water assessment or any line on the bill that is levied as a property tax is taxes and licenses on line 23.
- Line 20a, rent or lease of vehicles, machinery and equipment
- Regular commercial waste collection is line 25; a roll-off dumpster hired for a particular job or clear-out is equipment rental on line 20a.
- Line 30, line 30, business use of your home
- Water and trash at a rented premises are line 25; the same services at a home with an office in it are household utilities inside the line 30 calculation.
Examples that belong on line 25
- $64 a month of water and sewer at a rented salon
- $140 a month of commercial waste and recycling collection at a cafe
- $38 a quarter of storm water charge, reported as taxes on line 23
- $310 a month of water at a landscaping yard
- $92 a month of grease trap and waste service at a food business
What does not belong here
- Household water and trash, which go through the home office calculation.
- A property tax or assessment line on the municipal bill.
- Hazardous waste disposal for a specific job, which is a job cost.
- A connection deposit, which is not yet an expense.
What to keep
Keep the municipal statements for the business address for the whole year, and mark any line that is an assessment rather than a service charge so it lands on line 23 instead.
Other expenses on line 25
| Expense | Line |
|---|---|
| a dedicated second business landline | Schedule C, Line 25 |
| a hotspot or mobile data plan | Schedule C, Line 25 |
| a mixed-use phone bill | Schedule C, Line 25 |
| a mobile phone bill | Schedule C, Line 25 |
| a security monitoring service | Schedule C, Line 25 |
| a shared internet connection | Schedule C, Line 25 |
| a VoIP service | Schedule C, Line 25 |
| electricity for a rented office or studio | Schedule C, Line 25 |
| gas and heating for business premises | Schedule C, Line 25 |
| internet service | Schedule C, Line 25 |
| utilities in a part-shop part-home building | Schedule C, Line 25 |
Related lookups
- Where does a business license go on Schedule C?
- Where do car lease payments go on Schedule C?
- Can I deduct homeowners insurance for an office?
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 water, sewer and trash for business premises lands on Line 25 without you sorting it.
Start for free