Schedule C of Form 1040

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This practical, beginner‑friendly course provides tax professionals with a clear and comprehensive walkthrough of Schedule C of Form 1040—one of the most frequently filed and most heavily scrutinized IRS forms. Participants will learn how to accurately report income and expenses for sole proprietors and self‑employed individuals, determine the correct accounting method, properly classify business deductions, and avoid common compliance errors that trigger IRS audits.

The program also covers key areas such as self‑employed health insurance, home office deductions, vehicle expense reporting, depreciation rules, and worker classification issues. Designed with real‑world practice in mind, this course equips preparers with the knowledge needed to complete Schedule C efficiently, accurately, and in alignment with current tax law.

Who Should Attend
This course is suitable for Corporate tax and finance executives, directors, managers and staff, CPAs, CAs Enrolled Agents, accountants, attorneys and business/financial advisors who work with and advise businesses and individuals that have these tax implications. All in-house and public practice tax professionals will benefit from this timely and insightful seminar.

Topics Covered

• Who must file Schedule C and how business activity is defined
• Cash vs. accrual accounting for small businesses
• Reporting income, returns, allowances, and cost of goods sold
• Depreciation fundamentals, Section 179 expensing, and bonus depreciation
• Self‑employed health insurance, home office, and retirement contribution deductions
• Vehicle expense reporting rules and best practices
• Classification of workers: employee vs. independent contractor considerations
• Audit risks, documentation requirements, and IRS red flags

Learning Objectives

• Identify the taxpayers and business activities that require the filing of Schedule C
• Differentiate between the cash and accrual methods and determine the correct tax year for reporting income and expenses
• Apply rules for deducting self‑employed health insurance, home office expenses, retirement contributions, and worker compensation
• Describe common allowable business deductions such as advertising, utilities, office supplies, travel, and professional fees
• Evaluate vehicle expense deduction methods and determine when to use actual expenses vs. the standard mileage rate
• Apply depreciation rules—including Section 179 and bonus depreciation—to properly expense qualifying assets

Level
Basic

Instructional Method
Group: Internet-based

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None