I live abroad - in Poland and have a business there. I'm an US citizen and file US taxes in addition to taxes in Poland. I also apply for foreign tax credit on the business profit.
How should I fill up all the details of the schedule C? I have my tax forms from Poland, where I have total income , expenses, and net income. Should I fill up all the details of Schedule C regarding expenses in different categories? The tax rules are different here, so t is hard to match. I just want to enter total income and total expenses in Other expenses line, so the outcome will match the net profit.
Is it valid, or I need to brake all business expenses into US tax forms categories, which is very difficult and time consuming? It would be like a double accounting effort.
Thank you for suggestions.
