Schedule C (1040) Profit or Loss From Business

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Department of the Treasury
Internal Revenue Service
(99)

OMB No. 1545-0074

Profit or Loss From Business

SCHEDULE C
(Form 1040)
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2008

(Sole Proprietorship)
Partnerships, joint ventures, etc., generally must file Form 1065 or 1065-B.

Attach to Form 1040, 1040NR, or 1041.

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See Instructions for Schedule C (Form 1040).

Attachment
Sequence No.

09

Name of proprietor

Social security number (SSN)

A

Principal business or profession, including product or service (see page C-3 of the instructions)

B Enter code from pages C-9, 10, & 11
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C

Business name. If no separate business name, leave blank.

D Employer ID number (EIN), if any

E

Business address (including suite or room no.)
City, town or post office, state, and ZIP code

F
G
H

Accounting method:
(1)
Cash
(2)
Accrual
(3)
Other (specify) ©
Did you “materially participate” in the operation of this business during 2008? If “No,” see page C-4 for limit on losses
If you started or acquired this business during 2008, check here

Part I
1

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● This income was reported to you on Form W-2 and the “Statutory employee” box
on that form was checked, or
● You are a member of a qualified joint venture reporting only rental real estate
income not subject to self-employment tax. Also see page C-4 for limit on losses.

%

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1
2

2

Returns and allowances

3
4

Subtract line 2 from line 1
Cost of goods sold (from line 42 on page 2)

3

5
6
7

Gross profit. Subtract line 4 from line 3
Other income, including federal and state gasoline or fuel tax credit or refund (see page C-4)
Gross income. Add lines 5 and 6

5

4

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6
7

Expenses. Enter expenses for business use of your home only on line 30.
8

18 Office expense

18

19 Pension and profit-sharing plans

19

8

Advertising

9

Car and truck expenses (see
page C-5)

9

20 Rent or lease (see page C-6):

10

Commissions and fees

10

a Vehicles, machinery, and equipment

20a

11

Contract labor (see page C-5)

11

b Other business property

20b

12

Depletion

12

21 Repairs and maintenance

21

22 Supplies (not included in Part III)

22

23 Taxes and licenses

23

13

Depreciation and section 179
expense deduction (not
included in Part III) (see page
C-5)

13

a Travel

24a

Employee benefit programs
(other than on line 19)

14

b Deductible meals and
entertainment (see page C-7)

24b

15

Insurance (other than health)

15

16

Interest:

14

a Mortgage (paid to banks, etc.)
b Other
17
Legal and professional
services

24 Travel, meals, and entertainment:

16a
16b

25 Utilities

25

26 Wages (less employment credits)

26

27 Other expenses (from line 48 on
page 2)

27

17

28
29

Total expenses before expenses for business use of home. Add lines 8 through 27
Tentative profit or (loss). Subtract line 28 from line 7

30

Expenses for business use of your home. Attach Form 8829

31

Net profit or (loss). Subtract line 30 from line 29.

● If a loss, you must go to line 32.
If you have a loss, check the box that describes your investment in this activity (see page C-8).
● If you checked 32a, enter the loss on both Form 1040, line 12, and Schedule SE, line 2, or on
Form 1040NR, line 13 (if you checked the box on line 1, see the line 31 instructions on page C-7).
Estates and trusts, enter on Form 1041, line 3.
● If you checked 32b, you must attach Form 6198. Your loss may be limited.
For Paperwork Reduction Act Notice, see page C-9 of the instructions.

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28
29
30

● If a profit, enter on both Form 1040, line 12, and Schedule SE, line 2, or on Form 1040NR,
line 13 (if you checked the box on line 1, see page C-7). Estates and trusts, enter on Form 1041,
line 3.
32

No

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Income

Gross receipts or sales. Caution. See page C-4 and check the box if:

Part II

Yes

Cat. No. 11334P

%

31

%

32a

All investment is at risk.

32b

Some investment is not
at risk.

Schedule C (Form 1040) 2008

Schedule C (Form 1040) 2008

Part III
33

Method(s) used to
value closing inventory:

34

Page

a

Cost

b

Lower of cost or market

c

Other (attach explanation)

Was there any change in determining quantities, costs, or valuations between opening and closing inventory?
If “Yes,” attach explanation

35

Inventory at beginning of year. If different from last year’s closing inventory, attach explanation

35

36

Purchases less cost of items withdrawn for personal use

36

37

Cost of labor. Do not include any amounts paid to yourself

37

38

Materials and supplies

38

39

Other costs

39

40

Add lines 35 through 39

40

41

Inventory at end of year

41

42

Cost of goods sold. Subtract line 41 from line 40. Enter the result here and on page 1, line 4

42

Part IV

Yes

No

Information on Your Vehicle. Complete this part only if you are claiming car or truck expenses on
line 9 and are not required to file Form 4562 for this business. See the instructions for line 13 on page
C-5 to find out if you must file Form 4562.
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/

/

43

When did you place your vehicle in service for business purposes? (month, day, year)

44

Of the total number of miles you drove your vehicle during 2008, enter the number of miles you used your vehicle for:
a

2

Cost of Goods Sold (see page C-8)

Business

b Commuting (see instructions)

c Other

45

Was your vehicle available for personal use during off-duty hours?

Yes

No

46

Do you (or your spouse) have another vehicle available for personal use?

Yes

No

47a

Do you have evidence to support your deduction?

Yes

No

Yes

No

b If “Yes,” is the evidence written?

Part V

48

Other Expenses. List below business expenses not included on lines 8–26 or line 30.

Total other expenses. Enter here and on page 1, line 27

48
Schedule C (Form 1040) 2008