What is an intermittent expense?
Intermittent expenses are business costs that occur irregularly and without a fixed schedule. They are neither one-time nor consistently recurring, but instead arise as needed throughout the year.
What is an intermittent expense?
An intermittent expense is any ordinary and necessary business cost that occurs occasionally rather than on a regular, scheduled basis. These expenses are often tied to specific events, needs, or circumstances and may vary significantly in timing and amount from period to period. While intermittent expenses are legitimate business costs, they differ from recurring expenses in that they cannot be reliably forecast on a monthly basis.
How to categorize intermittent expenses
- Record under Operating Expenses on the income statement.
- Categorize each expense based on its nature (for example, Repairs, Professional Fees, or Equipment Maintenance).
- Avoid grouping frequent intermittent expenses into miscellaneous accounts.
- Review historical spending to anticipate potential intermittent costs.
- Keep receipts and clear descriptions to explain the purpose and timing of each expense.
Examples of intermittent expenses
- Equipment repairs or emergency maintenance.
- Legal or consulting fees incurred as needed.
- One-off marketing campaigns or promotional efforts.
- Seasonal staffing or temporary labor costs.
- Replacement of broken or outdated equipment.
- Compliance, filing, or permit fees paid occasionally.
Tax implications for intermittent expenses
- Intermittent expenses are generally tax-deductible if they are ordinary, necessary, and related to business operations.
- Expenses must be deducted in the tax year they are incurred, based on the business’s accounting method.
- Personal or non-business-related costs are not deductible.
- Proper categorization reduces scrutiny compared to overusing miscellaneous expense labels.
- Intermittent expenses are reported on Schedule C or under operating expense categories on business tax returns.
