Introduction to Schedules C and E Self-Study
Summary
After establishing the fundamentals of individual tax returns, you can dive into the specifics of reporting business and rental income on Form 1040, U.S. Individual Income Tax Return. This course guides you through completing Schedule C, Profit or Loss From Business, for sole proprietors, Schedule E, Supplemental Income and Loss, for rental properties and reporting the pass-through activity from Schedule K-1 (Form 1065), Partner’s Share of Income, Deductions, Credits, etc., for partners and Schedule K-1 (Form 1120-S), Shareholder’s Share of Income, Deductions, Credits, etc., for S corporation shareholders.
In addition, the text discusses how to determine if the taxpayer’s activity is a hobby or a for-profit trade or business, how to calculate the home office deduction, and how to determine the difference between deductible expenses and capitalizable repairs.
Objectives
Upon completion of this course, you will be able to:
- Determine whether a taxpayer’s activity is a hobby or a for-profit trade or business
- Differentiate between capital assets and expendable repairs
- Summarize the differences between MACRS, §179 and bonus depreciation
- Distinguish between taxable and nontaxable income, and deductible and nondeductible expenses for sole proprietorships and rental activities
- Prepare Schedule C, Schedule SE, Self-Employment Tax, and Schedule E
- Report items on Schedule K-1 from a partnership and S corporation on Form 1040, and applicable schedules
- Apply the basis, at-risk and passive activity loss limitations
- Determine home office eligibility and prepare Form 8829, Expenses for Business Use of Your Home
Course Details
This course includes an e-book and exam questions to help you earn CPE. CPE is issued after the exam is successfully completed.
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