Schedule C of Form 1040 (Currently Unavailable)

Author: Allison McLeod

Many self-employed or sole proprietors find themselves having to navigate Schedule C in reporting business income. While this attachment to Form 1040 seems straightforward on the surface, there are many traps for the unwary.

Publication Date: May 2021

Designed For
This course is ideal for CPAs, EAs, or other tax professionals.

Topics Covered

• Form 1040 Walkthrough
• Who Files Schedule C?
• Cash vs. Accrual Methods
• Deductions
• Special Issues for Self”employed
• Depreciation & Sec. 179 Deduction
• Net Operating Losses

Learning Objectives

• Identify the appropriate taxpayers who should be filing Schedule C
• Differentiate between the cash and accrual method, and the correct period in which taxpayers must recognize income and/or deductions
• Recognize how to develop a working knowledge of related issues; such as reporting the deduction of self-employed health insurance, employment taxes, home office deductions, and proper reporting of employee/independent contractor salaries, and retirement contributions
• Describe types of typical deductions, such as advertising, utilities, supplies, etc.
• Recognize how to determine the methods of deducting the cost of a company car
• Identify how to apply the rules, such as Section 179 or bonus depreciation, which permit the immediate expensing of some or all of the cost of certain assets
• Identify what year limitations apply to tax years, regarding the deductibility of interest expense
• Identify the total FICA self-employment tax
• Identify the standard auto expense mileage rate for 2021

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None