Gas and heating for business premises belongs on Line 25, utilities.
Why line 25
Heating a business premises is a utility on line 25, whether it arrives as metered natural gas, delivered propane or a heating oil fill. Delivered fuel raises a timing question that metered gas does not. A cash-basis business deducts the fill when it pays for it rather than as the tank empties, so a December delivery is a December deduction. Fuel that runs equipment or a vehicle rather than heating the building is not a utility: that belongs with the cost of running the equipment or on line 9.
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 gas and heating for business premises lands on Line 25 without you sorting it.
Start for freeWhat gas and heating for business premises is confused with
- Line 9, car and truck expenses
- Gas that heats the premises is a utility on line 25; fuel bought for a vehicle is car and truck expense on line 9.
- Line 30, line 30, business use of your home
- Heating a rented business premises is line 25 in full; heating a home that contains your office is a household utility inside the line 30 calculation.
- Line 22, supplies
- Propane for a forklift, a torch or a kiln is a consumable used in the work, so it sits in supplies on line 22 rather than in utilities.
Examples that belong on line 25
- $210 a month of natural gas at a rented bakery in winter
- $480 heating oil delivery at a workshop
- $88 a month of gas at a leased office
- $130 of propane for the shop's space heaters
- $1,240 of winter heating at a greenhouse operation
What does not belong here
- Fuel for a van or truck.
- Propane that runs production equipment, which is supplies.
- Heating a home with an office in it, which goes through line 30.
- A prepaid fuel contract for next year, beyond what the timing rules allow.
What to keep
Keep the monthly statements or the delivery tickets, which show the date, the volume and the address. For delivered fuel the delivery date is what fixes the year of the deduction, so keep the ticket and not just the card charge.
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 |
| internet service | Schedule C, Line 25 |
| utilities in a part-shop part-home building | Schedule C, Line 25 |
| water, sewer and trash for business premises | Schedule C, Line 25 |
Related lookups
- Where does business mileage go on Schedule C?
- Can I deduct homeowners insurance for an office?
- Where do job materials 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 gas and heating for business premises lands on Line 25 without you sorting it.
Start for free