Schedule C

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Preparing Schedule C

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Schedule C-Page 1, Part II: Expenses

Schedule C lists specific expenses on lines 8 thru 26. Line 27, Other expenses, is a catch-all line for other expenses not preprinted on Schedule C.

Tip: Simplify tax preparation. Set up a chart of accounts using the same expense categories listed on Schedule C. Then just enter the totals from each individual account into Schedule C at year-end.

Deducting the Home Office Deduction on Schedule C

If you claim the home office deduction:

Complete Form 8829 to figure your home office deduction.
Enter the home office deduction on line 30, Schedule C.

Note: The home office deduction is only used to reduce Tentative profit shown on line 29, Schedule C.

You may not claim the home office deduction if line 29 shows a Tentative loss.

You may only reduce Tentative profit to zero, not below zero. In other words, you can't use the home office deduction to create a loss.

Preparing Schedule C: Schedule C-Page 2, Part III: Cost of Goods Sold; Schedule C-Part IV: Information on Your Vehicle; Schedule C-Part V: Other Expenses

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Schedule C

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