It is tough being a sole proprietor and finding the time to run your business effectively. If you are preparing your tax return yourself, understanding the instructions for using Schedule C can make life even tougher. Frank Ellis, a Traverse City tax expert, feels your pain and offers the following advice.
It is tough being a sole proprietor and finding the time to run your business effectively. If you are preparing your tax return yourself, understanding the instructions for using Schedule C can make life even tougher. Frank Ellis, a Traverse City tax expert, feels your pain and offers the following advice.
You need Schedule C to report profit and loss from a business operated as a sole proprietor. The IRS Schedule C instructions include information on different types of businesses such as LLCs, Husband-Wife, Partnership, Joint Venture Status and others.
Your Schedule C should be attached to your 1040 Form and is used for:
• Statutory employees who had wages and expenses
• Anyone needing to report income (or loss) from a business (or profession) that was run as a sole proprietorship
• Certain joint ventures
• Miscellaneous income (see form 1099-MISC for types of income to report)
Any project in which you become involved is considered a business if the reason you participated in it was for income or profit and you did it regularly and continually.
Statutory employees and small businesses with business expenses of $5,000 or less may file a Schedule C-EZ if they meet the criteria listed on that form.
If your principal source of income was from farming activities, you need to file Schedule F instead of Schedule C; and the 2014 Schedule C has a few new rules:
• The business standard mileage rate is 55.5 cents per mile
• Gross receipts from credit and debit cards and third party network payments don’t need to be reported separately.
• The heavy highway vehicle use tax has been extended through September 30, 2017. Using certain types of vehicles in your business may require paying a higher use tax.
If you would like help filing your return as a self-employed person, consider doing it online with the TurboTax Home and Business Edition. This will give you step by step guidance and maximized deductions for the largest possible tax refund.
Contact: Frank
Company: Easy Income Tax Filing Online
Address: 945 East 8th Street Suite A
Traverse City, Michigan 49686
Telephone No.: (231) 922-0938
Website: http://www.easyincometaxfilingonline.com/
Email Address: frank@easyincometaxfilingonline.com