Schedule C is applicable to many different types of businesses. Clients vary in the range of income and types of deductions; however, the basic concepts are the same. All income must be reported on the tax return, and all expenses need to be ordinary and necessary in order to claim a deduction.

This course is focused on Schedule C, including a business between spouses (a qualified joint venture) and a single-member limited liability company (SMLLC). It will discuss requirements for starting a business and explain, rules and recordkeeping for income and expenses, including regular business expenses, home office expenses, self-employment tax, and other items.

After successfully completing this course, you will be able to:

• recognize the requirements and recommendations for the keeping of different types of business records
• identify payments made by a Schedule C business that should be reported on Form 1099-MISC or 1099-NEC
• identify the types of items that are reported as gross receipts or sales, and the locations for reporting returns and cost of goods sold
• identify expenses incurred by a business that can be categorized as start-up costs, and the two methods that may be used to deduct those costs
• identify business expenses that can be deducted under categories including legal and professional fees, meals and entertainment, repairs and maintenance, taxes and licenses, utilities, wages and costs of goods sold
• identify the two methods available for calculating the home office deduction and determine which method is more advantageous to individual clients in given cases

Tax Year: 2022