Vendor category
What tax category is a Lowe's charge?
A Lowe's charge normally falls under Supplies. This is because a business typically buys materials and equipment from Lowe's to use in its operations, which are considered expenses. If you're buying personal items like gardening tools or home decor, the same merchant would be a personal purchase.
LOWES #2231Category
6022Supplies
Schedule C, line 22
Confidence
95%
- Decided by
- a vendor rule
- Deductible
- Generally deductible
- Why
- matched seed rule 'lowes'
Businesses use Lowe's to purchase materials and equipment necessary for their operations, such as lumber, tools, and building supplies. These expenses are considered necessary for the business to function and are therefore deductible on the business tax return.
On the other hand, if you're buying personal items like gardening tools or home decor, the same merchant would be a personal purchase. Personal purchases are not deductible on the business tax return and are instead a draw against your equity.
Personal purchases
Can be a draw against equity, not a deductible expense.
Business use
Must be used in business operations to be deductible.
Merchant type
Same merchant can be personal or business depending on the purchase.
Categorize your own transactions
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Questions people ask
- What if I'm buying a tool for both business and personal use?
- In this case, you can only deduct the business use percentage of the tool's cost. You'll need to keep records of how the tool is used to determine the business use percentage.
- Can I deduct the cost of a Lowe's gift card?
- No, gift cards are not deductible expenses. You can only deduct the cost of the items you purchase with the gift card.
- How do I keep track of business and personal purchases from Lowe's?
- You should keep separate records of business and personal purchases, including receipts and invoices. This will help you accurately categorize your expenses and claim the correct deductions on your business tax return.
Related expense categories
More in vendor categories
General information about how bookkeeping and Schedule C categorization work — not tax advice. BookkeeperLens is a demo running on synthetic data.