Yes, your self-employed income is equal to your self-employed revenues minus the deductible expenses.
Let's back up to income. When you are filling out the schedule C, at the top, it asks for income. In that location, it means total of all revenue from every source. When you are talking to a bank about income - it is Minh's answer above. So sorry for the confusion!
You want all income at the top and then list expenses, subcontractors, supplies, etc down under the actual category for each expense. The IRS uses those categories, with your income and location to determine your audit risk. Let me help with some links for business owners:
Small Business and Self-Employed Tax Center - complete guide
Yes, your self-employed income is equal to your self-employed revenues minus the deductible expenses.
Thank you for responding yes. On the Turbo Tax format, it also asks for Subcontractor labor. Do you add that number in again?
Let's back up to income. When you are filling out the schedule C, at the top, it asks for income. In that location, it means total of all revenue from every source. When you are talking to a bank about income - it is Minh's answer above. So sorry for the confusion!
You want all income at the top and then list expenses, subcontractors, supplies, etc down under the actual category for each expense. The IRS uses those categories, with your income and location to determine your audit risk. Let me help with some links for business owners:
Small Business and Self-Employed Tax Center - complete guide
So, if I am reading this right, total income is gross revenue, not net revenue. I build swimming pools, so I have gross revenue, equipment purchases and subcontractor labor that gets deducted to realize net revenue (income). Right?