Which Form 1120 C Losses 2023-2024

Hi, this is John again with PDF tax. We're working with Schedule C today. We're going to try to give you an idea of how this form looks and works. This is the form that you would use and attach to your individual income tax return (1040) if you had a business and were a sole proprietor, meaning you were the owner and worked by yourself without any partners, and you didn't incorporate your business in any way. So, you would fill out this form and attach it to your Schedule C on your Form 1040 to show your profit or loss for the year. Let's start by filling in some basic information. It will only take a few minutes. Let's say that Jeff Jones has a manufacturing business where he creates leather handbags. His business name is Leather Works. Now, we need to come up with a business code. To do that, we're going to refer to the instructions for Schedule C, which have the business codes. Under "Leather and Allied Products," the code we want is 316990. So, we'll enter 316990. The business address can be any address. You don't necessarily need an employer ID unless you applied for one. You can simply use your social security number if you don't have an employer ID. Next, we need to decide on the accounting method. We'll say that this business has inventory, so we'll need to use the accrual method. Now, did you materially participate? In other words, did you spend your time working in this business? Jeff certainly did because it's his 100% business, and it's what he does full-time. So, we'll say "yes" here. Did you start in 2017? No. Did you make payments that would require filing a 1099? He probably did because he made payments to purchase inventory,...