Wednesday, July 27, 2016

When You Should Use Schedule C-EZ


You should use Schedule C-EZ if you have a small business that does not have a loss and all these following situations:
  • Business expenses of $5,000 or less
  • Must use the cash method of accounting
  • Cannot have an inventory at any time during the year
  • Must have only one business as a sole proprietor, qualified joint venture, or statutory employee
  • Cannot have employees
  • Cannot deduct expenses for business use of home
  • Cannot have prior year unallowed passive activity losses from the business
  • Cannot be required to file form 4562 - Depreciation and Amortization for the business




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