Forms & Schedules

Question 1

Business expenses on Schedule C

Answer 1

General expenses such as
1. COGS
2. Salaries and Commissions
3. Taxes
4. Depreciation
5. Bad write offs
etc.

Question 1

What is included as gross income on Schedule C

Answer 1

Flow through income

1. Cash
2. Proprety
3. Cancellation of debt

Question 2

Where do Individual NOLs get deducted

Answer 2

Schedule C

Question 3

What is one Schedule A

Answer 3

List of itemized deductions

Question 4

What is on Schedule B

Answer 4

Interest & Ordinary Dividends

Question 5

What is on Schedule D

Answer 5

Capital Gains/Losses

Question 6

What is on Schedule E

Answer 6

Itemized deductions for rental properties, trusts, partnerships, royalty etc. Passive income (mostly real estate)

Question 7

How many days can you rent a house without it being included as real estate income on Schedule E

Answer 7

Fewer than 15 days = excluded from income

15 days or more expenses must be prorated between personal and rental. No business loss allowed

Question 8

What is the mom and pop rental income rule

Answer 8

Can deduct up to $25,000 if they are active participants

Question 9

Formula for calculating rental income/loss

Answer 9

Gross rental income
Prepaid rental income
Rent cancellation payment
Improvement-in-lieu of Rent
(Rental Expenses)
Net Rental income or loss

Question 10

Picture of partnership item reporting

Answer 10