Sole Proprietorship - Schedule C
The most frequently asked tax questions related to Sole Proprietorship - Schedule C
For Tax Payers
Need professional help with a specific tax issue or have general tax questions? Ask a CPA is the easiest way to get advice from a licensed accountant in our network.
Ask a Tax QuestionFor Accountants
Provide answers to tax questions and introduce your practice to new potential clients. Build your CPAdirectory profile and earn reputation points.
Answer Tax QuestionsSole Proprietorship - Schedule C
Do I have to carryback my current years business loss?
Asked Tuesday, January 03, 2012 by an anonymous user
No. you may make an election to forego the carryback. You must attach a statement claiming to forego the carryback and file it with the current years tax return by the due date plus extensions.
Sole Proprietorship - Schedule C
Carryback current years business loss?
Asked Tuesday, January 03, 2012 by an anonymous user
You can carryback your current years loss 2 years then forward 20 years.
A 3 year carryback is available for a NOL attributable to casualty losses or a presidential declared disaster.
A farming NOL can be carried back 5 years.
A 3 year carryback is available for a NOL attributable to casualty losses or a presidential declared disaster.
A farming NOL can be carried back 5 years.
Sole Proprietorship - Schedule C
Statutory Employee reporting
Asked Tuesday, January 03, 2012 by an anonymous user
Statutory employees report their income and expenses on Schedule C instead of as miscellaneous deductions on Schedule A subject to the 2% AJI floor limitation.
Generally, statutory employees are full time life insurance salespersons, full time traveling sales persons and pieceworkers.
Generally, statutory employees are full time life insurance salespersons, full time traveling sales persons and pieceworkers.
Sole Proprietorship - Schedule C
Are health insurance premiums an expense claimed on Schedule C.
Asked Tuesday, January 03, 2012 by an anonymous user
No. 100% of the health insurance premiums paid for yourself, your spouse and your dependents are claimed as an adjustment to income on Form 1040 line 29.
Sole Proprietorship - Schedule C
Can my wife and I file on one Schedule C?
Asked Tuesday, January 03, 2012 by an anonymous user
A married couple filing jointly can file on 1 Schedule C instead of filing a partnership tax return.
Sole Proprietorship - Schedule C
What are some advantages and disadvantages of selecting to be a Sole Proprietor compared to other entities?
Asked Thursday, December 22, 2011 by an anonymous user
Some advantages are: it has minimum legal restrictions; and is easy to discontinue. Some disadvantages are: unlimited liability; your income tax cannot be deferred by retaining profits; and you may not bring in new owners or outside capital contributions. Speak to your local CPA to determine the best entity choice for your needs.
Sole Proprietorship - Schedule C
Auto lease payments
Asked Monday, November 28, 2011 by an anonymous user
Yes. If you use a car entirely for business the cost of leasing is deductible. You cannot depreciate a car you lease. You can choose to deduct the standard mileage rate in lieu of actual expenses including lease payments.
Sole Proprietorship - Schedule C
Taxi - standard mileage rate deduction
Asked Monday, November 28, 2011 by an anonymous user
Yes. As of 12/31/10 the ban on using the standard mileage rate on auto's used for hire such as a taxi was lifted. ,br> The standard mileage allowance for business use of a auto (including taxi's) in 2013 is 56.5 cents per mile for business miles driven.
Sole Proprietorship - Schedule C
Web site available to help small businesses
Asked Friday, November 18, 2011 by an anonymous user
Yes. The IRS has developed a web site to help small business and self-employed persons at www.irs.gov/businesses/small/index.html.