Self-Employment & Small Business

SELF-EMPLOYED/SMALL BUSINESS

TAX RETURN INFORMATION

BUSINESS INFORMATION
Name*

FirstMI Last
Phone Number*
1st - Business Name
2nd - Business Name
Business Address (if different from Tax Return)

Street Address

Street Address Line 2

CityState

Zip Code
1st - Business Type*
2nd - Business Type
1st - Employer Identification Number/EIN
2nd - Employer Identification Number/EIN
1st - How long have you owned your business?
2nd - How long have you owned your business?
Do you have any documentation to substantiate your business?

YesNo
Do you have separate bank accounts for personal and business transactions?

YesNo
Who maintains the business records for your business
Accounting Method -1st Business

CashAccural
Accounting Method - 2nd Business

CashAccural
What service or product do you provide for 1st Business?
What service or product do you provide for Business?

INCOME
Please indicate if the following applies
1. Did you materially participated in the business
2. Was this business started or acquired this year
3. Make payments which need form(s) 1099?
4. Have you filed a 1099S or will you?
5. Is the business known as an LLC?
Part I. INCOME

Enter Income Amounts in the next Income section. *Income includes all forms of cash and the FMV of property received in connecting to providing goods and services. Multiple form(s) 1099 (including 1099K and 1099MISC) are collectively reported on one Schedule C if the income is connected to the same type of economic activity, even if they are from different taxpayers.

TYPE OF INCOME

	1st - Business Amounts ($)	2nd - Business Amounts ($)
Gross Receipts/Sales
Gross Receipts/Sales 1099K
Gross Receipts/Sales 1099MISC
Gross Receipts/Sales 1099NEC
Less Returns & Allowances

COST OF GOODS SOLD - skip if not applicable
Part II. COST of GOODS SOLD*

If COGS is not relevant to your business skip COGS section.* Cost of Goods Sold (COGS) only applies to those businesses in reselling or producing goods for resale and almost exclusively applies to those business using some form of accrual-based accounting. Do not “double-dip” by placing expenses in the “Expenses” section and also in the COGS section.
Method(s) used to value closing inventory:

CostLower of Cost or MarketOther, Explain
Was there any change in determining quantities, costs, or valuations between opening and closing inventory?

NoYes, Explain
Enter amounts in whole dollars:
a. Beginning Inventory (cost of inventory at the beginning of tax year):   $
b. Additional Inventory purchased during the year: $
c. Supplies, shipping, other costs of production:   $
e. Labor costs connected to production:   $
f. Ending Inventory (cost of inventory at the end of tax year):   $
g. Withdrawals personal use/gifts:   $
h. Other miscellaneous costs of production:   $

REGULAR BUSINESS EXPENSES
Part III. EXPENSES

*Business expenses must be ordinary and necessary in order to be deductible. In plain terms, they must be common or accepted practice in the business and exist to further the business’ operation/goal of income production. Meals and entertainment expense are usually reduced by half of the cost. If you have Business Use of Home do not “double-dip with the costs of the home in the lines above with the interest paid on the mortgage or utility expenses.

EXPENSES

	1st - Business Expense Amount	2nd - Business Expense Amount	EXPLAIN "Other" in this section Only
(a). Advertising
(b). Car & Truck (DO NOT USE if using mileage)
(c). Commissions/Fees
(d). Depletion
(e). Depreciation/ Section 179 Exp Deduction
(f). Employee Benefit Programs (not line l)
(g). Insurance (other than health)
(h). Mortgage Interest (paid to banks, etc.)
(i). Interest Other ****Describe there ------->
(j). Legal/ Professional services
(k). Office expense (see examples below)
(l). Pension and profit-sharing plans
(m). Rent or lease - Vehicles
(n). Rent/Lease - Machinery
(o). Rent/Lease - Equipment
(p). Rent/Lease - Business Property
(q). Repairs/Maintenance
(r). Supplies (not included in Part III)
(s). Taxes/Licenses
(t). Travel/Meals: Travel & Lodging
(u). Travel/Meals: Deductible Meals
(v). Utilities
(w). Wages (less employment credits)

At-risk rules.

In most cases, if you have a business loss and amounts invested in the business for which you are not at risk, you must complete Form 6198 to apply a limitation that may reduce your loss. The at-risk rules generally limit the amount of loss (including loss on the disposition of assets) you can claim to the amount you could actually lose in the business. Visit the link below for full information.

IRS Line 32 At-Risk Rules
If you sustain a Business Loss, how would you describe your investment in the activity?

All investment is at Risk *Loss will not be reduced by the at-risk rules or the passive activity loss rulesSome investment is not at Risk *The at-risk rules apply to your loss. Form 6198 is required
Office Expenses are considered purchases that you made for items related to the operation of your business. Here is a list of a few items:

Web site services, Computer Software, Domain Names, Merchant fees, Credit Card fees, Desktop Computers, Office Phone Systems, Employee Cellphones, etc.

VEHICLE EXPENSES skip if not applicable
Part IV. BUSINESS VEHICLE EXPENSES

*Business vehicle expenses are complex. Your preparer may ask you for more information in order to prepare your return. Business mileage cannot be taken with actual expenses except for parking fees, tolls, and the like; they are mutually exclusive. ***Business miles should be logged – at the minimum – with a mileage log showing date, miles, and business purpose for each trip. The IRS does not allow a deduction for undocumented mileage. If there are multiple vehicles, please tell your preparer.
Date the vehicle was placed into business service

MonthDayYear

BUSINESS VEHICLE EXPENSES

	1st - Business Amount	2nd - Business Amount
(a). Total Miles vehicle driven regardless of purpose
(b). Business Miles
(c). Commuting
(d). Other Miscellaneous Miles
(e). Transportation Cost Parking fees, tolls etc.

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

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

Yes
Do you have evidence to support your deduction?

Yes
Is the evidence written?

Yes

HOME OFFICE EXPENSES skip if not applicable
Part V. BUSINESS USE of HOME

BUSINESS USE of HOME*Business use of the home must be used regularly and exclusively to be deductible. This type of deduction is often regularly checked by the IRS. Maintain adequate records. Your preparer may ask you a lot of information for this deduction. Alternately, the IRS has a “Safe Harbor Method” of $5 per square foot of home office space, up to 300 square feet, which may be easier to report and doesn’t involve depreciation of the home or apportioning expenses.

BUSINESS USE OF HOME

	1st - Business Total Amount	2nd - Business Total Amount	Describe Other/Date Placed
(a). Total area of the home in square feet
(b). Area used for business in square feet
(c). Mortgage Interest Paid
(d). Property taxes
(e). Insurance Utilities
(f). Repairs Other - describe ------->
*Date placed into services ---->
*Value/Basis of the home ---->

SIGN, SAVE, PRINT
By signing this document, I/spouse agree that the contents of the above pages are accurate to the best of my/our knowledge, and do not hold the preparer or business liable for any omissions or inaccurate information contained herein this document.
Business Owner Signature*

Clear
Date*

MonthDayYear
Date
Co-Owner Signature

Clear
Date

MonthDayYear
Date
Note:

Please be sure to save all Tax documents information such as Receipts, Statements, Invoices, Vouchers for your own records. Reporting total figures on this form indicates your acknowledgement that such figures are accurate and that you vouch for their accuracy as reported on your Federal and/or State return. Please be sure to print this completed form your records.
Please be sure to print a copy of this completed form for your records.
Should be Empty:

SELF-EMPLOYED/SMALL BUSINESS

Please indicate if the following applies

Part I. INCOME

Part II. COST of GOODS SOLD*

Part III. EXPENSES

Part IV. BUSINESS VEHICLE EXPENSES

Part V. BUSINESS USE of HOME

Note: