schedule c

IRS Schedule C is a tax form for reporting profit or loss from a business, typically for people who operate sole proprietorships or single-member LLCs. To be deductible on Schedule C, expenses must be both ordinary and necessary for the business. Gross income includes income from whatever source derived, but does not include extraterritorial income that is qualifying foreign trade income. Capitalizing costs of producing property and acquiring property for resale is also required. If you are self-employed, you may need to file a Form SE, "Self-Employment Tax," which will calculate your Social Security and Medicare tax based on your self-employment income. 1 2 3