There are a few different ways to answer this question, as there are a few different types of businesses and a few different types of expenses. However, in general, rent or mortgage payments come under the category of operating expenses. This is because they are necessary costs of doing business and are not directly related to the production of goods or services. Other examples of operating expenses include office supplies, utilities, and insurance.
What Are the Different Types of Expenses?
There are four different types of expenses: operating expenses, capital expenses, one-time expenses, and recurring expenses. Each type of expense is treated differently for tax purposes.
Operating Expenses
Operating expenses are necessary costs of doing business that are not directly related to the production of goods or services. Examples of operating expenses include rent or mortgage payments, office supplies, utilities, and insurance. You can deduct these expenses from your income on your taxes.
Capital Expenses
Capital expenses are costs that are incurred in the process of acquiring or improving property or equipment. Examples of capital expenses include the purchase of a new computer or the installation of a new roof. Capital expenses are not deductible from your income on your taxes.
One-Time Expenses
One-time expenses are costs that are not recurring. Examples of one-time expenses include the purchase of office furniture or the installation of a new sign. One-time expenses are not deductible from your income on your taxes.
Recurring Expenses
Recurring expenses are costs that occur on a regular basis. Examples of recurring expenses include rent or mortgage payments, office supplies, utilities, and insurance. You can deduct these expenses from your income on your taxes.
In general, rent or mortgage payments come under the category of operating expenses. This is because they are necessary costs of doing business and are not directly related to the production of goods or services. Other examples of operating expenses include office supplies, utilities, and insurance.
