Accounting homework help

SCHEDULE C
(Form 1040)

Department of the Treasury
Internal Revenue Service (99)

Profit or Loss From Business
(Sole Proprietorship)

Go to www.irs.gov/ScheduleC for instructions and the latest information.
Attach to Form 1040, 1040-SR, 1040-NR, or 1041; partnerships must generally file Form 1065.

OMB No. 1545-0074

2021
Attachment
Sequence No. 09

Name of proprietor Social security number (SSN)

A Principal business or profession, including product or service (see instructions) B Enter code from instructions

C Business name. If no separate business name, leave blank. D Employer ID number (EIN) (see instr.)

E Business address (including suite or room no.)

City, town or post office, state, and ZIP code

F Accounting method: (1) Cash (2) Accrual (3) Other (specify)

G Did you “materially participate” in the operation of this business during 2021? If “No,” see instructions for limit on losses . Yes No

H If you started or acquired this business during 2021, check here . . . . . . . . . . . . . . . . .

I Did you make any payments in 2021 that would require you to file Form(s) 1099? See instructions . . . . . . . . Yes No

J If “Yes,” did you or will you file required Form(s) 1099? . . . . . . . . . . . . . . . . . . . . . Yes No
Part I Income

1

Gross receipts or sales. See instructions for line 1 and check the box if this income was reported to you on
Form W-2 and the “Statutory employee” box on that form was checked . . . . . . . . . 1

2 Returns and allowances . . . . . . . . . . . . . . . . . . . . . . . . . 2

3 Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . 3

4 Cost of goods sold (from line 42) . . . . . . . . . . . . . . . . . . . . . . 4

5 Gross profit. Subtract line 4 from line 3 . . . . . . . . . . . . . . . . . . . . 5

6 Other income, including federal and state gasoline or fuel tax credit or refund (see instructions) . . . . 6
7 Gross income. Add lines 5 and 6 . . . . . . . . . . . . . . . . . . . . . 7

Part II Expenses. Enter expenses for business use of your home only on line 30.
8 Advertising . . . . . 8

9

Car and truck expenses (see
instructions) . . . . 9

10 Commissions and fees . 10

11 Contract labor (see instructions) 11

12 Depletion . . . . . 12
13

Depreciation and section 179
expense deduction (not
included in Part III) (see
instructions) . . . . 13

14

Employee benefit programs
(other than on line 19) . 14

15 Insurance (other than health) 15

16 Interest (see instructions):

a Mortgage (paid to banks, etc.) 16a

b Other . . . . . . 16b
17 Legal and professional services 17

18 Office expense (see instructions) . 18

19 Pension and profit-sharing plans . 19

20 Rent or lease (see instructions):

a Vehicles, machinery, and equipment 20a

b Other business property . . . 20b

21 Repairs and maintenance . . . 21

22 Supplies (not included in Part III) . 22

23 Taxes and licenses . . . . . 23

24 Travel and meals:

a Travel . . . . . . . . . 24a

b

Deductible meals (see
instructions) . . . . . . . 24b

25 Utilities . . . . . . . . 25

26 Wages (less employment credits) 26

27 a Other expenses (from line 48) . . 27a
b Reserved for future use . . . 27b

28 Total expenses before expenses for business use of home. Add lines 8 through 27a . . . . . . 28

29 Tentative profit or (loss). Subtract line 28 from line 7 . . . . . . . . . . . . . . . . . 29

30

Expenses for business use of your home. Do not report these expenses elsewhere. Attach Form 8829
unless using the simplified method. See instructions.
Simplified method filers only: Enter the total square footage of (a) your home:

and (b) the part of your home used for business: . Use the Simplified

Method Worksheet in the instructions to figure the amount to enter on line 30 . . . . . . . . . 30

31 Net profit or (loss). Subtract line 30 from line 29.

• If a profit, enter on both Schedule 1 (Form 1040), line 3, and on Schedule SE, line 2. (If you
checked the box on line 1, see instructions). Estates and trusts, enter on Form 1041, line 3.

• If a loss, you must go to line 32. } 31
32 If you have a loss, check the box that describes your investment in this activity. See instructions.

• If you checked 32a, enter the loss on both Schedule 1 (Form 1040), line 3, and on Schedule
SE, line 2. (If you checked the box on line 1, see the line 31 instructions.) Estates and trusts, enter on
Form 1041, line 3.
• If you checked 32b, you must attach Form 6198. Your loss may be limited.

} 32a All investment is at risk. 32b Some investment is not
at risk.

For Paperwork Reduction Act Notice, see the separate instructions. Cat. No. 11334P Schedule C (Form 1040) 2021

Schedule C (Form 1040) 2021 Page 2
Part III Cost of Goods Sold (see instructions)

33

Method(s) used to
value closing inventory: a Cost b Lower of cost or market c Other (attach explanation)

34

Was there any change in determining quantities, costs, or valuations between opening and closing inventory?
If “Yes,” attach explanation . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No

35 Inventory at beginning of year. If different from last year’s closing inventory, attach explanation . . . 35

36 Purchases less cost of items withdrawn for personal use . . . . . . . . . . . . . . 36

37 Cost of labor. Do not include any amounts paid to yourself . . . . . . . . . . . . . . 37

38 Materials and supplies . . . . . . . . . . . . . . . . . . . . . . . . 38

39 Other costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

40 Add lines 35 through 39 . . . . . . . . . . . . . . . . . . . . . . . . 40

41 Inventory at end of year . . . . . . . . . . . . . . . . . . . . . . . . 41

42 Cost of goods sold. Subtract line 41 from line 40. Enter the result here and on line 4 . . . . . . 42
Part IV Information on Your Vehicle. Complete this part only if you are claiming car or truck expenses on line 9 and

are not required to file Form 4562 for this business. See the instructions for line 13 to find out if you must file
Form 4562.

43 When did you place your vehicle in service for business purposes? (month/day/year) / /

44 Of the total number of miles you drove your vehicle during 2021, enter the number of miles you used your vehicle for:

a Business b Commuting (see instructions) c Other

45 Was your vehicle available for personal use during off-duty hours? . . . . . . . . . . . . . . . Yes No

46 Do you (or your spouse) have another vehicle available for personal use?. . . . . . . . . . . . . . Yes No

47a Do you have evidence to support your deduction? . . . . . . . . . . . . . . . . . . . . Yes No

b If “Yes,” is the evidence written? . . . . . . . . . . . . . . . . . . . . . . . . . Yes No

Part V Other Expenses. List below business expenses not included on lines 8–26 or line 30.

48 Total other expenses. Enter here and on line 27a . . . . . . . . . . . . . . . . 48

Schedule C (Form 1040) 2021

Version A, Cycle 3

INTERNAL USE ONLY
DRAFT AS OF
April 27, 2021

2021 Schedule C (Form 1040)

SE:W:CAR:MP

Profit or Loss From Business (Sole Proprietorship)

SCHEDULE C (Form 1040)

Department of the Treasury Internal Revenue Service (99)

Profit or Loss From Business

(Sole Proprietorship)

 Go to www.irs.gov/ScheduleC for instructions and the latest information.

 Attach to Form 1040, 1040-SR, 1040-NR, or 1041; partnerships must generally file Form 1065.

OMB No. 1545-0074

O M B No. 1545-0074. For paperwork Reduction Act Notice, see the instructions.

2021

2021. Cat. No. 11334P.

Attachment 

Sequence No. 09 

Attachment Sequence No. 09. For Paperwork Reduction Act Notice, see the separate instructions.

B  Enter code from instructions 

E

F

Accounting method:

(1)

(2)

(3)

G

Did you “materially participate” in the operation of this business during 2021? If “No,” see instructions for limit on losses                             

H

If you started or acquired this business during 2021, check here          

I

Did you make any payments in 2021 that would require you to file Form(s) 1099? See instructions          

J

If “Yes,” did you or will you file required Form(s) 1099?          

Part I

Income

1 

 

Gross receipts or sales. See instructions for line 1 and check the box if this income was reported to you on Form W-2 and the “Statutory employee” box on that form was checked                   

1

2

Returns and allowances          

2

3

Subtract line 2 from line 1         

3

4

Cost of goods sold (from line 42)          

4

5

Gross profit. Subtract line 4 from line 3                  

5

6

Other income, including federal and state gasoline or fuel tax credit or refund (see instructions)         

6

7

Gross income. Add lines 5 and 6          

7

Part II

Expenses. Enter expenses for business use of your home only on line 30. 

8

Advertising          

8

9 

 

Car and truck expenses (see instructions)          

9

10

Commissions and fees          

10

11

Contract labor (see instructions)

11

12

Depletion                  

12

13 

 

 

 

Depreciation and section 179  expense deduction (not  included in Part III) (see instructions)          

13

14 

 

Employee benefit programs  (other than on line 19)          

14

15

Insurance (other than health)         

15

16

Interest (see instructions):

a

Mortgage (paid to banks, etc.)

16a

b

Other          

16b

17

Legal and professional services

17

18

Office expense (see instructions)          

18

19

Pension and profit-sharing plans          

19

20

Rent or lease (see instructions):

a

Vehicles, machinery, and equipment

20a

b

Other business property          

20b

21

Repairs and maintenance          

21

22

Supplies (not included in Part III)                   

22

23

Taxes and licenses          

23

24

Travel and meals:

a

Travel         

24a

b

 

Deductible meals (see instructions)                   

24b

25

Utilities          

25

26

Wages (less employment credits)          

26

27

a

Other expenses (from line 48)          

27a

b

Reserved for future use          

27b

28

Total expenses before expenses for business use of home. Add lines 8 through 27a          

28

29

Tentative profit or (loss). Subtract line 28 from line 7         

29

30 

 

Expenses for business use of your home. Do not report these expenses elsewhere. Attach Form 8829 unless using the simplified method. See instructions. 

. Use the Simplified

Method Worksheet in the instructions to figure the amount to enter on line 30          

30

31

Net profit or (loss). Subtract line 30 from line 29. 

• If a profit, enter on both Schedule 1 (Form 1040), line 3, and on Schedule SE, line 2. (If you checked the box on line 1, see instructions). Estates and trusts, enter on Form 1041, line 3. 

• If a loss, you must  go to line 32.

}

31

32

If you have a loss, check the box that describes your investment in this activity. See instructions.

• If you checked 32a, enter the loss on both Schedule 1 (Form 1040), line 3, and on Schedule SE, line 2. (If you checked the box on line 1, see the line 31 instructions.) Estates and trusts, enter on Form 1041, line 3. 

• If you checked 32b, you must attach Form 6198. Your loss may be limited. 

}

32a

32b

For Paperwork Reduction Act Notice, see the separate instructions.

Cat. No. 11334P

Schedule C (Form 1040) 2021

Schedule C (Form 1040) 2021

Page 2 

Part III

Cost of Goods Sold (see instructions) 

33 

 

Method(s) used to

value closing inventory: 

a

b

c

34 

 

Was there any change in determining quantities, costs, or valuations between opening and closing inventory?

If “Yes,” attach explanation         

35

Inventory at beginning of year. If different from last year’s closing inventory, attach explanation         

35

36

Purchases less cost of items withdrawn for personal use         

36

37

Cost of labor. Do not include any amounts paid to yourself         

37

38

Materials and supplies         

38

39

Other costs         

39

40

Add lines 35 through 39         

40

41

Inventory at end of year         

41

42

Cost of goods sold. Subtract line 41 from line 40. Enter the result here and on line 4         

42

Part IV

Information on Your Vehicle. Complete this part only if you are claiming car or truck expenses on line 9 and are not required to file Form 4562 for this business. See the instructions for line 13 to find out if you must file Form 4562. 

43

When did you place your vehicle in service for business purposes? (month/day/year)

44

Of the total number of miles you drove your vehicle during 2021, enter the number of miles you used your vehicle for:

a

45

Was your vehicle available for personal use during off-duty hours?         

46

Do you (or your spouse) have another vehicle available for personal use?         

47

a

Do you have evidence to support your deduction?         

b

If “Yes,” is the evidence written?         

Part V

Other Expenses. List below business expenses not included on lines 8–26 or line 30. 

48

Total other expenses. Enter here and on line 27a         

48

Schedule C (Form 1040) 2021