Definition: IRS Form Schedule C is used to calculate on personal income tax returns profit or loss from a business operated by you or from a profession in which you are the sole proprietor.
The net income or loss for a business is figured on the Schedule C by calculating business income and subtracting business expenses, which may include the costs associated with maintaining a home offices as well as many other deductible business expenses. The total profit (or loss) is then entered on your 1040 as income.
The new (in 2013) simplified home office deduction is also calculated on Schedule C. If you use the old home office deduction method it is still calculated on Form 8829 and then entered on to Schedule C.
I am not a tax attorney, CPA or tax preparation specialist. The information here is meant as a general guide. For specific questions about your own taxes, please refer to IRS publications or consult a tax specialist.
Also Known As: Profit or Loss from a Business Form
Common Misspellings: ScheduleC