Why do i need to file a schedule c

Share this presentation. Share the current section. Outline Transcript Links Bios. Here are a few tips for Schedule C filers.

Keep good records. To get there, go to IRS. Help Normal mode. Your comment will be read by our web staff, but will not be published. Do you need to file a schedule C if you didnt make any money I started an LLC in the middle of for my personal photography business but I never actually started the business up I didn't have time. I already filed my personal tax return and then realized I might need to file a schedule c form Topics: TurboTax Deluxe Online.

Employee Tax Expert. Do you need to file a schedule C if you didnt make any money No, you don't have to file Schedule C if you have no income. Thank you in advance for your time. An activity qualifies as a business if your primary purpose for engaging in the activity is for profit and you are involved in the activity with continuity and regularity. A single-member LLC, that has not elected to be treated as a corporation, uses the Schedule C to report profit or loss from the business. The LLC is considered a business structure allowed by state statute for other legal purposes but is disregarded or ignored for tax purposes.

Because LLCs are formed in the state, each state has different laws and regulations. Therefore, it is important to learn about your state regulations regarding an LLC. Mileage and other vehicle records if you used one for business. Here's the basic structure of Schedule C:. Page 1 of Schedule C. Part I is where you tally your sales and report your cost of goods sold so you can see your gross profit.

Part II is where you report your business expenses. There are over a dozen categories to help you stay organized, such as advertising, car and truck expenses, legal and professional services, rent, travel and meal expenses and other costs. The instructions for Schedule C explain the rules for each type of expense.

If you have a net loss, it may be deductible on your personal tax return. Part III helps you calculate your cost of goods sold. Part IV is a place to report certain information on a vehicle if you have car- or truck-related business expenses. Learn about coronavirus relief options for small businesses and the self-employed.

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