Schedule C of Form 1040

Overview

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

**Please Note:  If you need credit reported to the IRS for this IRS approved program, please download the IRS CE request form on the Course Materials Tab and submit to kori.herrera@acpen.com.

Objectives

• Identify the appropriate taxpayers who should be filing Schedule C
• Discuss the difference between the cash and accrual methods, and the correct period in which taxpayers must recognize income and/or deductions
• 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
• Discuss types of typical deductions, such as advertising, utilities, supplies, etc.
• Determine the methods of deducting the cost of a company car
• Be able 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

Highlights

• When Schedule C applies
• Cash v. Accrual method
• Typical business deductions
• Business vehicle expenses
• Section 179 and bonus depreciation