Instructions For Schedule C 1040 - 2016 printable pdf download

Department of the Treasury

Internal Revenue Service

2016 Instructions for Schedule C

Profit or Loss

Use Schedule C (Form 1040) to report income or (loss) from a business you operated

or a profession you practiced as a sole proprietor. An activity qualifies as a business if

From Business

your primary purpose for engaging in the activity is for income or profit and you are

involved in the activity with continuity and regularity. For example, a sporadic activity

or a hobby does not qualify as a business. To report income from a nonbusiness activi-

ty, see the instructions for Form 1040, line 21, or Form 1040NR, line 21.

Also use Schedule C to report (a) wages and expenses you had as a statutory em-

ployee, (b) income and deductions of certain qualified joint ventures, and (c) certain

income shown on Form 1099-MISC, Miscellaneous Income. See the Instructions for

Recipient (back of Copy B of Form 1099-MISC) for the types of income to report on

Schedule C.

Small businesses and statutory employees with business expenses of $5,000 or less

may be able to file Schedule C-EZ instead of Schedule C. See Schedule C-EZ for de-

tails.

You may be subject to state and local taxes and other requirements such as business

licenses and fees. Check with your state and local governments for more information.

Section references are to the Internal

activity that involves people using tech-

Schedule F (Form 1040) to report

Revenue Code unless otherwise noted.

nology advancements to arrange transac-

profit or (loss) from farming.

tions that generate revenue from sharing

Schedule J (Form 1040) to figure

Future Developments

assets or providing services upon re-

your tax by averaging your farming or

quest. Visit

IRS.gov/sharing

to get more

fishing income over the previous 3

For the latest information about devel-

information about the tax consequences

years. Doing so may reduce your tax.

opments related to Schedule C and its

of participating in the sharing economy.

Schedule SE (Form 1040) to pay

instructions, such as legislation enacted

self-employment tax on income from

after they were published, go to

IRS.gov/

Reminders

any trade or business.

schedulec.

Form 3800 to claim any of the

Small Business and Self-Employed

What's New

general business credits.

(SB/SE) Tax Center. Do you need help

Form 4562 to claim depreciation

with a tax issue or preparing your return,

Standard mileage rate. The business

(including the special allowance) on

or do you need a free publication or

standard mileage rate for 2016 is 54

assets placed in service in 2016, to claim

form? SB/SE serves taxpayers who file

cents per mile.

amortization that began in 2016, to

Form 1040, Schedules C, E, F, or Form

make an election under section 179 to

Change to Line D instructions. If you

2106, as well as small business taxpay-

expense certain property, or to report

conducted your trade or business as a

ers with assets under $10 million. For

information on listed property.

single-member limited liability company

additional information, visit the Small

Form 4684 to report a casualty or

(LLC), use the EIN issued to the LLC

Business and Self-Employed Tax Center

theft gain or (loss) involving property

(in the LLC's legal name) for a qualified

at IRS.gov/businesses/small.

used in your trade or business or

retirement plan, to file employment ex-

income-producing property.

cise, alcohol, tobacco, or firearms re-

General

Form 4797 to report sales,

turns, or as a payer of gambling win-

Instructions

exchanges, and involuntary conversions

nings. Do not use the EIN issued to you

(not from a casualty or theft) of trade or

in your name as a sole proprietor of the

business property.

Other Schedules and Forms

trade or business.

Form 6198 to figure your

You May Have To File

Live theatrical production costs. You

allowable loss if you have a business

may elect to expense certain costs of

Schedule A (Form 1040) to deduct

loss and you have amounts invested in

qualified live theatrical productions

interest, taxes, and casualty losses not

the business for which you are not at

commencing in 2016. For more informa-

related to your business.

risk.

tion, see

Film and television and live

Schedule E (Form 1040) to report

Form 8582 to figure your

theatrical production

expenses, later.

rental real estate and royalty income or

allowable loss from passive activities.

Sharing Economy Tax Center. The

(loss) that is not subject to

Form 8594 to report certain

sharing (or on-demand, gig, or access)

self-employment tax.

purchases or sales of groups of assets

economy refers to an emerging area of

that constitute a trade or business.

C-1

Oct 25, 2016

Cat. No. 24329W

Instructions For Schedule C 1040 - 2016

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