Where does rent go on Schedule C?
Line 20a (equipment) / Line 20b (premises)
Schedule C splits rent in two. Line 20a, 'Rent or lease of vehicles, machinery, and equipment', covers rented equipment, leased vehicles, and machinery hire. Line 20b, 'Rent or lease of other business property', covers premises: studio space, a workshop, a coworking desk, a rented chair or booth, or storage. Rent for space inside your own home is not reported on either line — it goes through the home-office deduction on its own form.
Examples
- A booth rented in a salon — Line 20b.
- A scissor lift hired for a week — Line 20a.
- A self-storage unit holding inventory — Line 20b.
Watch out for
- Leased vehicles may require a lease inclusion adjustment — check the rules for the vehicle's value.
- A deposit is not rent until it is applied or forfeited.
- Keep the rental agreement, not only the payments.
Stop guessing the category
DocuSpending reads each receipt and assigns the Schedule C category for you, then totals the year on demand.
General information, not tax advice. Amounts, limits, and percentages change between tax years — check the current IRS Schedule C instructions or ask a tax professional about your situation.
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