Part V. Other Expenses. Line 48

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 27b. 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 can’t deduct fines or penalties paid to a government for violating any law. For details on business expenses, see Pub. 334 , chapter 8.

Amortization.

Include amortization in this part. For amortization that begins in 2025, complete and attach Form 4562.

You can amortize such costs as:

The cost of pollution-control facilities;

Amounts paid for research and experimentation (see sections 174 and 174A for new provisions that impact research and experimentation expenditures);

Amounts paid to acquire, protect, expand, register, or defend trademarks or trade names; or

Goodwill and certain other intangibles.

In most cases, 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.

At-risk loss deduction.

Any loss from this business that was not allowed last year because of the at-risk rules is treated as a deduction allocable to this business in 2025.

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. 334 , chapter 8.

Business startup costs.

If your business began in 2025, you can elect to deduct up to $5,000 of certain business startup costs. The $5,000 limit is reduced (but not below zero) by the amount by which your total startup costs exceed $50,000. Your remaining startup costs can be amortized over a 180-month period beginning with the month the business began.

For details, see IRS.gov/Newsroom/Heres-how-businesses-can-deduct-startup-costs-from-their-federal-taxes . For amortization that begins in 2025, complete and attach Form 4562.

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 2025 to remove architectural or transportation barriers to individuals with disabilities and the elderly. However, you can’t take both a credit (on Form 8826) and a deduction for the same expenditures.

Nontaxable Medicaid waiver payments.

Include the nontaxable amount of your Medicaid waiver payments. See Medicaid waiver payments , earlier.

De minimis safe harbor for tangible property.

Generally, you must capitalize costs to acquire or produce real or tangible personal property used in your trade or business, such as buildings, equipment, or furniture. However, if you elect to use the de minimis safe harbor for tangible property, you may deduct de minimis amounts paid to acquire or produce certain tangible property if these amounts are deducted by you for financial accounting purposes or in keeping your books and records.

If you have an applicable financial statement, you may use this safe harbor to deduct amounts paid for tangible property up to $5,000 per item or invoice. If you don’t have an applicable financial statement, you may use the de minimis safe harbor to deduct amounts paid for tangible property up to $2,500 per item or invoice.

Only deduct these amounts as other expenses. Don’t include these amounts on any other line.

For details on making this election and requirements for using the de minimis safe harbor for tangible property, see chapter 8 of Pub. 334 .

Film, television, live theatrical, and sound recording production expenses.

You can elect to deduct costs of certain qualified film or television productions, certain qualified live theatrical productions, and certain qualified sound recording productions. See section 181 for details.

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 2025.

You can elect to amortize the remaining costs over 84 months. For amortization that begins in 2025, complete and attach Form 4562.

The amortization election and the expense election don’t apply to trusts. For details on reforestation expenses, see chapter 4 of Pub. 225 .

Technology and software tools.

You can deduct technology and software tools that are ordinary and necessary expenses directly related to operating your business. Generally, this will include tax preparation software and subscription services paid to manage your business. However, you can’t deduct technology or software tools that must be depreciated or amortized. Most computer software expenses must be capitalized and depreciated or expensed under section 179. See Pub. 946 for more information.