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taxmap/instr/i1040sc-011.htm#TXMP39a4a913 Part V. Other Expenses

Include all ordinary and necessary business expenses not deducted elsewhere on Schedule C. List the type and amount of each expense separately in the space provided. Enter the total on lines 48 and 27. Do not include the cost of business equipment or furniture, replacements or permanent improvements to property, or personal, living, and family expenses. Do not include charitable contributions. Also, you cannot deduct fines or penalties paid to a government for violating any law. For details on business expenses, see Pub. 535.

taxmap/instr/i1040sc-011.htm#TXMP1d6af296 Amortization.

Include amortization in this part. For amortization that begins in 2007, you must complete and attach Form 4562.

You can elect to amortize such costs as:

• The cost of pollution-control facilities.
• Amounts paid for research and experimentation.
• Qualified revitalization expenditures.
• Amounts paid to acquire, protect, expand, register, or defend trademarks or trade names.
• Goodwill and certain other intangibles.
• Certain expenses paid or incurred to create or acquire a musical composition or its copyright.

In general, you cannot amortize real property construction period interest and taxes. Special rules apply for allocating interest to real or personal property produced in your trade or business.

For a complete list, see the Instructions for Form 4562, Part VI.

taxmap/instr/i1040sc-011.htm#TXMP212be027 At-risk loss deduction.

Any loss from this business that was not allowed as a deduction last year only because of the at-risk rules is treated as a deduction allocable to this business in 2007. For the loss to be deductible, the amount that is at risk must be increased.

taxmap/instr/i1040sc-011.htm#TXMP525b3477 Bad debts.

Include debts and partial debts from sales or services that were included in income and are definitely known to be worthless. If you later collect a debt that you deducted as a bad debt, include it as income in the year collected. For details, see Pub. 535.

taxmap/instr/i1040sc-011.htm#TXMP43f280b4 Business start-up costs.

If your business began in 2007, you can elect to deduct up to $5,000 of certain business start-up costs. This limit is reduced (but not below zero) by the amount by which your total start-up costs exceed $50,000. Your remaining start-up costs can be amortized over a 180-month period, beginning with the month the business began.

For details, see Pub. 535. For amortization that begins in 2007, you must complete and attach Form 4562.

taxmap/instr/i1040sc-011.htm#TXMP2a686054 Deduction for removing barriers to individuals with disabilities and the elderly.

You may be able to deduct up to $15,000 of costs paid or incurred in 2007 to remove architectural or transportation barriers to individuals with disabilities and the elderly. However, you cannot take both the credit (discussed on page C-1) and the deduction on the same expenditures.

taxmap/instr/i1040sc-011.htm#TXMP49ee7d57 Film and television production expenses.

You can elect to deduct costs of certain qualified film and television productions. For details, see Pub. 535.

taxmap/instr/i1040sc-011.htm#TXMP700a4197 Forestation and reforestation costs.

Reforestation costs are generally capital expenditures. However, for each qualified timber property you can elect to expense up to $10,000 ($5,000 if married filing separately) of qualifying reforestation costs paid or incurred in 2007. This limit is increased for small timber producers with qualified timber property located in the GO Zone, the Rita GO Zone, or the Wilma GO Zone. For GO Zone information, see  
Pub. 4492.

You can elect to amortize the remaining costs over 84 months. For amortization that begins in 2007, you must complete and attach Form 4562.

The amortization election does not apply to trusts and the expense election does not apply to estates and trusts. For details on reforestation expenses, see Pub. 535.

taxmap/instr/i1040sc-011.htm#TXMP64a52e09 GO Zone clean-up costs.

You can deduct 50% of qualified GO Zone clean-up costs paid or incurred in 2007 for the removal of debris from, or the demolition of structures on, real property located in the GO Zone. The property must be held for use in a trade or business, for the production of income, or as inventory. The remaining 50% of these costs must be capitalized. See Pub. 4492 for the areas included in the GO Zone.

taxmap/instr/i1040sc-011.htm#TXMP6d6ccc0f Costs of making commercial buildings energy efficient.

You may be able to deduct part or all of the cost of modifying existing commercial buildings to make them energy efficient. For details, see section 179D and Notice 2006-52. You can find Notice 2006-52 on page 1175 of Internal Revenue Bulletin 2006-26 at  
www.irs.gov/irb/2006-26_IRB/ar11.html.

taxmap/instr/i1040sc-011.htm#TXMP64e18aa4 Paperwork Reduction Act Notice.

We ask for the information on this form to carry out the Internal Revenue laws of the United States. You are required to give us the information. We need it to ensure that you are complying with these laws and to allow us to figure and collect the right amount of tax.

You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax returns and return information are confidential, as required by section 6103.

The time needed to complete and file this form will vary depending on individual circumstances. The estimated burden for individual taxpayers filing this form is included in the estimates shown in the instructions for their individual income tax return. The estimated burden for all other taxpayers who file this form is approved under OMB control number 1545-1974 and is shown below.

Recordkeeping	1 hr., 18 min.
Learning about the law or the form	24 min.
Preparing the form	1 hr.
Copying, assembling, and sending the form to the IRS	20 min.

If you have comments concerning the accuracy of these time estimates or suggestions for making this form simpler, we would be happy to hear from you. See the instructions for the tax return with which this form is filed.

taxmap/instr/i1040sc-011.htm#TXMP3b34eb3d Principal Business or Professional Activity Codes

These codes for the Principal Business or Professional Activity classify sole proprietorships by the type of activity they are engaged in to facilitate the administration of the Internal Revenue Code. These six-digit codes are based on the North American Industry Classification System (NAICS).

Select the category that best describes your primary business activity (for example, Real Estate). Then select the activity that best identifies the principal source of your sales or receipts (for example, real estate agent). Now find the six-digit code assigned to this activity (for example, 531210, the code for offices of real estate agents and brokers) and enter it on Schedule C or C-EZ, line B.

Note. If your principal source of income is from farming activities, you should file Schedule F.

taxmap/instr/i1040sc-011.htm#TXMP6de8b173
Accommodation, Food Services, & Drinking Places 

taxmap/instr/i1040sc-011.htm#TXMP53d50532
Accommodation 

taxmap/instr/i1040sc-011.htm#TXMP1a264217
Food Services & Drinking Places 

taxmap/instr/i1040sc-011.htm#TXMP07194956
Administrative & Support and Waste Management & Remediation Services 

taxmap/instr/i1040sc-011.htm#TXMP48532d64
Administrative & Support Services 

taxmap/instr/i1040sc-011.htm#TXMP028d13f9
Waste Management & Remediation Services 

taxmap/instr/i1040sc-011.htm#TXMP4fef4eac
Agriculture, Forestry, Hunting, & Fishing 

taxmap/instr/i1040sc-011.htm#TXMP184c2f20
Support Activities for Agriculture & Forestry 

taxmap/instr/i1040sc-011.htm#TXMP72dc5c4b
Arts, Entertainment, & Recreation 

taxmap/instr/i1040sc-011.htm#TXMP14d7aa12
Amusement, Gambling, & Recreation Industries 

taxmap/instr/i1040sc-011.htm#TXMP136136e2
Museums, Historical Sites, & Similar Institutions 

taxmap/instr/i1040sc-011.htm#TXMP14665487
Performing Arts, Spectator Sports, & Related Industries 

taxmap/instr/i1040sc-011.htm#TXMP46d533a1
Construction of Buildings 

taxmap/instr/i1040sc-011.htm#TXMP2ad01580
Heavy and Civil Engineering Construction 

taxmap/instr/i1040sc-011.htm#TXMP64fc391d
Specialty Trade Contractors 

taxmap/instr/i1040sc-011.htm#TXMP31edf345
Educational Services 

taxmap/instr/i1040sc-011.htm#TXMP11f39fd7
Finance & Insurance 

taxmap/instr/i1040sc-011.htm#TXMP245350e1
Credit Intermediation & Related Activities 

taxmap/instr/i1040sc-011.htm#TXMP5719ef81
Insurance Agents, Brokers, & Related Activities 

taxmap/instr/i1040sc-011.htm#TXMP26c58467
Securities, Commodity Contracts, & Other Financial Investments & Related Activities 

taxmap/instr/i1040sc-011.htm#TXMP49069944
Health Care & Social Assistance 

taxmap/instr/i1040sc-011.htm#TXMP0685f052
Ambulatory Health Care Services 

taxmap/instr/i1040sc-011.htm#TXMP72125f32
Hospitals 

taxmap/instr/i1040sc-011.htm#TXMP7900156c
Nursing & Residential Care Facilities 

taxmap/instr/i1040sc-011.htm#TXMP66baa8f6
Social Assistance 

taxmap/instr/i1040sc-011.htm#TXMP4871eec8
Information 

taxmap/instr/i1040sc-011.htm#TXMP523ddc33
Broadcasting (except Internet) & Telecommunications 

taxmap/instr/i1040sc-011.htm#TXMP4394d92a
Data Processing Services 

taxmap/instr/i1040sc-011.htm#TXMP5c5d0826
Motion Picture & Sound Recording 

taxmap/instr/i1040sc-011.htm#TXMP1f0c7a76
Manufacturing 

taxmap/instr/i1040sc-011.htm#TXMP3a8a4eb8
Chemical Manufacturing 

taxmap/instr/i1040sc-011.htm#TXMP09a4e431
Food Manufacturing 

taxmap/instr/i1040sc-011.htm#TXMP24e50746
Leather & Allied Product Manufacturing 

taxmap/instr/i1040sc-011.htm#TXMP16360ca9
Nonmetallic Mineral Product Manufacturing 

taxmap/instr/i1040sc-011.htm#TXMP245ea79f
Mining 

taxmap/instr/i1040sc-011.htm#TXMP25a6cdb1
Other Services 

taxmap/instr/i1040sc-011.htm#TXMP430811a3
Personal & Laundry Services 

taxmap/instr/i1040sc-011.htm#TXMP732f8e34
Repair & Maintenance 

taxmap/instr/i1040sc-011.htm#TXMP620ece7c
Professional, Scientific, & Technical Services 

taxmap/instr/i1040sc-011.htm#TXMP0a58b1b2
Architectural, Engineering, & Related Services 

taxmap/instr/i1040sc-011.htm#TXMP65edb023
Computer Systems Design & Related Services 

taxmap/instr/i1040sc-011.htm#TXMP3b91ccba
Specialized Design Services 

taxmap/instr/i1040sc-011.htm#TXMP094a176d
Other Professional, Scientific, & Technical Services 

taxmap/instr/i1040sc-011.htm#TXMP5175487b
Real Estate & Rental & Leasing 

taxmap/instr/i1040sc-011.htm#TXMP5d353be7
Real Estate 

taxmap/instr/i1040sc-011.htm#TXMP2c3e6476
Rental & Leasing Services 

taxmap/instr/i1040sc-011.htm#TXMP3adc6a32
Religious, Grantmaking, Civic, Professional, & Similar Organizations 

taxmap/instr/i1040sc-011.htm#TXMP78a832c2
Retail Trade 

taxmap/instr/i1040sc-011.htm#TXMP7f9c654e
Building Material & Garden Equipment & Supplies Dealers 

taxmap/instr/i1040sc-011.htm#TXMP2f40237b
Clothing & Accessories Stores 

taxmap/instr/i1040sc-011.htm#TXMP4174acc7
Electronic & Appliance Stores 

taxmap/instr/i1040sc-011.htm#TXMP6b304765
Food & Beverage Stores 

taxmap/instr/i1040sc-011.htm#TXMP7787c13c
Furniture & Home Furnishing Stores 

taxmap/instr/i1040sc-011.htm#TXMP038b857c
Gasoline Stations 

taxmap/instr/i1040sc-011.htm#TXMP1b9158dc
General Merchandise Stores 

taxmap/instr/i1040sc-011.htm#TXMP08b7cc5b
Health & Personal Care Stores 

taxmap/instr/i1040sc-011.htm#TXMP3bdc71a0
Motor Vehicle & Parts Dealers 

taxmap/instr/i1040sc-011.htm#TXMP2a66a695
Sporting Goods, Hobby, Book, & Music Stores 

taxmap/instr/i1040sc-011.htm#TXMP7d6331c6
Miscellaneous Store Retailers 

taxmap/instr/i1040sc-011.htm#TXMP637580a4
Nonstore Retailers 

taxmap/instr/i1040sc-011.htm#TXMP672911ee
Transportation & Warehousing 

taxmap/instr/i1040sc-011.htm#TXMP366ef2c8
Couriers & Messengers 

taxmap/instr/i1040sc-011.htm#TXMP5dd366aa
Warehousing & Storage Facilities 

taxmap/instr/i1040sc-011.htm#TXMP66273cf8
Utilities 

taxmap/instr/i1040sc-011.htm#TXMP2f438b78
Wholesale Trade 

taxmap/instr/i1040sc-011.htm#TXMP75504941
Merchant Wholesalers, Durable Goods 

taxmap/instr/i1040sc-011.htm#TXMP29d5648a
Merchant Wholesalers, Nondurable Goods 

taxmap/instr/i1040sc-011.htm#TXMP501c65ed
Wholesale Electronic Markets and Agents & Brokers 

Previous Page:  Instructions - Part IV. Information on Your Vehicle Next Page:  Instructions - 2007 Instructions for Schedule D Use   to find additional occurrences of topic items.