Many of you owned a business during the year and you will be required to fill out Irs tax from 1040 Schedule C. SChedule C is to be used for sole proprietorships, LLC’s and corporations. If you are a small business and have expenses of less than $5,000 you may be eligible for Schedule C-EZ, take a look at that form for more details.
There are a few new items in Schedule C. The credit for increasing research activities has been changed and extended to include amounts paid before January 1, 2010. Section 179 deduction has been increased to $250,000 – this is for expensing certain depreciable business assets.For qualifiying assets purchased in the calendar year, you may be able to take a depreciation deduction equal to 50% of the propery value, if it has a recovery period of 20 years or less. THere is an Indian employment credit for qualifying wages that has also been extended.
If you live in Kansas or the Midwest, you may be eligible for deductions for demolition and clean up costs as part of that area being labeled a “disaster area”. There are other federally declared disaster areas that you may be able to take deductions in, for the full list, see http://www.Fema.gov/news/disaster.fema.
Make sure you accurately classify your business according to the Principal Business or Professional Activity Codes. These codes are used to classify your business according to the primary business activity that they are engaged in throughout the year. Some examples are: Accomodation, Food Services and Drinking Places, Administrative & Support and Waste Management & Remediation Services and Agriculture, Forestry, Hunting and Fishing.
Download form 1040 Schedule C right now directly from the IRS Website!
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