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Schedule C – Profit or Loss From Business (Sole Proprietorship)

August 24th, 2021

The Schedule C is used to report income or loss from a business you operated or a profession you practiced as a sole proprietor when your primary purpose is to generate income for profit and are involved in this activity with continuity and regularity. Some of the activities falling within this group would be tradesmen such as carpenters, plumbers, landscapers, beauticians, personal fitness trainers, dietitians, massage therapists and of course tax return preparers.
Again for tax year 2015, the IRS allows a Simplified Method of calculating an Office in Home deduction. The maximum square footage you may use to calculate this irrevocable, annual expense is 300 sqft. The IRS has also established an allowance of five dollars ($5) per square foot as the maximum cost, thus the maximum expense for business use of your home is 300 sqft X $5 = $1,500. Before the Simplified Method may be employed the taxpayer must meet all of the necessary qualifications to claim an Office in Home Deduction.