J.K. Lasser's Your Income Tax 2013: For Preparing Your 2012 Tax Return

16.9 Taxes Deductible as Business Expenses

That a tax is not deductible as an itemized deduction does not mean you may not deduct it elsewhere on your return. For example, you may generally deduct property taxes incurred as a cost of doing business on Schedule C. Here are some other examples:

If you pay excise taxes on merchandise you sell in your business, you deduct the tax as a business expense. If you pay Social Security taxes (FICA) on your employees’ wages, you deduct the tax as a business expense on Schedule C. If you pay sales tax on business property, you add the tax to the cost of the property for depreciation purposes. If the tax is paid on nondepreciable property, the tax is included in the currently deductible cost. If you pay sales tax on a deductible business meal, the tax is deductible as part of the meal costs, subject to the cost limit (20.24).

Note: If you are not a material participant in the business, your Schedule C expenses are subject to passive activity limitations; see Chapter 10.

Above-the-line deduction for portion of self-employment tax..

On Schedule SE, you figure the amount of your self-employment tax liability as well as the portion of the liability that you may deduct as an above-the-line adjustment to gross income on Line 27 of Form 1040 (45.3). This is not a business expense and is not deductible on Schedule C.