How to enter items in Sch C?

[sam992116]

This is first year I will filing Tax Return as Trader and previous year I was using Investor with standard deduction.

Mostly likely I will be using standard deduction this year as well.

How do I enter Items in Sch C? I can see Sch C in Forms Mode.

Which section of Interview with Deduction and Credits deals with Sch C for Traders?

[tagteam]

Which version of TurboTax are you using?

You should see the profit and loss from business section in the interview if you're using Home & Business.

[sam992116]

CD

[tagteam]

If you're using Home & Business, click the Business tab.

[sam992116]

sorry I have premier only.

[tagteam]

The you either need to upgrade to Home & Business or enter the information in Forms Mode on the Schedule C worksheet.

[VolvoGirl]

You can enter schedule C and expenses in Premier, actually in all desktop programs.  All the Desktop programs have the same forms.

To add a business or Schedule C (I have the Home & Business Desktop program which is a little different than the lower versions). So for other versions, see if this gets you there

Go to Federal tab
Click on Wages and Income - Continue
Pick - I'll choose what I work on
Then scroll way down to Business Items
Business Income and Expenses - Click the Start or Update button

You use your own name, address and ssn or business name and EIN if you have one. You should say you use the Cash Accounting Method and all income is at risk. After you put in your income and expenses if your net profit is $400 or more you will pay 15.3% Self Employment tax in addition to your regular income tax. The Schedule SE will be automatically filled out for it.

[sam992116]

Thanks

Is there a benefit of upgrading to Home & Business edition vs Premier for Sch C?

I don't have any rental or any business income.  Within Sch C I will have only Expenses as my profit and loss from trading will go to Sch D.

I have a general question

Information/numbers you add in TT interview section will flow into Forms.

For lots of item there is error in Form Mode so one can correct it manually. Information you add in Forms mode, does that flow back to interview section. I have having issues with 1116. If add some thing in Forms modes and go back to interview mode. Interview mode seems to able to get rid of you what I have added in Forms mode.

[sam992116]

@VolvoGirl @Mike9241

In Sch I have lots (like close to 7)of Financial Subscriptions like WSJ etc.

Q: Should I list them one by one or Just combine them and list as Financial subscriptions?

Last year I filed Sch C and some of my expenses were Hardware purchase like Computer etc . I did not elect to choose/deduct Home Office deduction.

Q: Do I have to depreciate those or is it a choice? If yes how I do that? How much it effect taxes? Let say $2000 worth of computer hardware.

This year  I was able to fill out Sch C and my expenses.

I was checking this form in Forms Mode and it went to Question Did you get a 1099-K? but now software is dancing back and forth between this question and Any 1099 Misc Income? I am keep entering tab Continue but it is NOT moving forward. I was able to earlier enter my expenses in in form and went all the way to end.

Any suggestions (I am using CD premier )

[tagteam]

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@sam992116 wrote:

In Sch I have lots (like close to 7)of Financial Subscriptions like WSJ etc.

Q: Should I list them one by one or Just combine them and list as Financial subscriptions?

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There's really no need to list the subscriptions individually; you can combine the total cost and enter that as "financial subscriptions" or some other relevant description.

[tagteam]

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@sam992116 wrote:

Q: Do I have to depreciate those or is it a choice? If yes how I do that? How much it effect taxes? Let say $2000 worth of computer hardware.

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You might be able to take advantage of the de minimis safe harbor election.

See https://www.irs.gov/businesses/small-businesses-self-employed/tangible-property-final-regulations#Ad...

[tagteam]

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@sam992116 wrote:

I was checking this form in Forms Mode and it went to Question Did you get a 1099-K? but now software is dancing back and forth between this question and Any 1099 Misc Income? 

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This is a known issue which has been reported, but not yet fixed. There is, however, a workaround:

Re: When I select "no" for the question did you receive a 1099-MISC form & "no" for the subsequent "...

[sam992116]

Thanks @tagteam Now Sch C trick seems to working now. Could you please help me with with these questions?

Business expense deductions

There are 2 types of Business Expenses which one would deduct as expense

services - subscription , data fees etc

goods/hardware - computer you need

Lets assume I have already deducted them for 2022 taxes.

Then do you get to choose depreciation as Business Asset for the same computer expense which you have already deducted as business expense. Or it has to be something else which you either have not deducted or not able to deduct as business expense?

Computer Hardware I bought and deducted as business expense in year 2022 are now business assets?

yes or no?

In turbotax it is asking Business assets summary.

Thanks in advance

[VolvoGirl]

It’s either a business expense or an Asset.  Not both.  So if you already took the expense you don’t enter it as an Asset.  The expense is a one time thing.  It’s one and done.  When you enter a new item bought in 2023 you choose how to enter it.  

So if you bought it in 2022 and expensed it then NO it is not a business asset.

[tagteam]

@VolvoGirl is correct, @sam992116:

If you expensed it in 2022 you should not also have it listed as an asset in the Assets section of the program.