2021 Sole Proprietorship Income and Expenses
New Clients - We're so excited to begin our partnership with you! Returning Clients - Welcome back! and thank you for allowing us to serve your business this year. To ensure we have the information we need to best serve you, please take a few moments to fill out the form below. If you have any questions, please feel free to contact us at any time. Thank you! 317-414-0695 | firstname.lastname@example.org www.bookkeepingservices.org
Sole Proprietor General Information
Name of sole proprietor
Business name (if different)
Business Address (If Different)
Principal business activity
Date business started
Date business closed
Do you materially parcipate in this business?
Please select which forms and/or documents you can provide to show business income earned during the tax year?
1099-K (For Credit Card Transactions)
Third Party Payment Processor Statements (Cash App, Paypal, Stripe)
Profit & Loss Statement
Self-Prepared Statement of Income Received
Which type of entity is your company?
Single Member LLC
I don't have a clue
Do you have Employees (W2s)
Do you have Independent Contractors (1099s)
I have no clue
Did you pay ESTIMATED TAXES in the prior year related to this business?
Cost of Goods Sold
(for manufacturers, wholesalers, and businesses that make, buy, or sell goods)
Beginning Inventory Jan 1
Purchases less cost of items withdrawn for personal use
Direct Labor( Do not include any amounts paid to yourself)
Materials and supplies
Inventory Dec 31
This is the total of all monies received (sales) from your business activities. This does not include any money received from business loans, investors (including you, the owner), or the sale of fixed assets (like old equipment). It does include 1099-MISC income.
Gross Receipts or Sales
Less: Sales Returns and Allowances
Sole Proprietor Business Expense
(1)Provide copies of Form W-3, Form 940, Form 941, Form 1096, Form 1099-NEC, Form 1099-MISC, and any state tax forms filed. (2)Entertainment is no longer deductible for taxes.
Commissions and fees
Employee benefit programs
Employee health care plans
Insurance (other then health and auto)
Interest – mortgage
Interest – other
Legal and Professional Fees
Meals for business in restaurants (100% deduct.)
Meals – other business meals (50% deduct.)
Start-up costs (first year of business)
Pension and Profit Sharing
Rent or lease – car, machinery, equipment
Rent or lease – other business property
Repairs and Maintenance
Supplies (not included in inventory cost)
Taxes - payroll
Taxes – property(1)
Taxes - sales
Taxes - state
Other Expenses (Itemized):
Car Expenses (use a separate form for each vehicle)
Generally, you can use either the standard mileage rate or actual expenses to calculate the deductible costs of operating your car for business purposes. However, to use the standard mileage rate, it must be used in the first year the car is available for business. In later years, you can then choose between either the standard mileage rate method or actual expenses.
Date car placed in service
Beginning of year odometer (mileage)
End of year odometer (mileage)
Did you trade in your car this year?
Cost of trade-in
Actual auto expense
• Meals. You can deduct the cost of meals while traveling away from home on business. You can use the actual cost of your meals or the standard meal allowance per diem, which can vary by location • Travel/Lodging. You can deduct the ordinary and necessary expenses of traveling away from your home for business purposes. Included expenses are transportation, airfare, taxi, lodging, et
City visited (for per diem)
# of days in city
Bus, train, tax
Parking and tolls
Meals (actual receipts)
Other Travel Expenses (Itemized):
Equipment Purchases – Enter the following information for depreciable assets purchased that have a useful life greater than one year
Depreciation is the annual deduction that allows you to recover the cost or other basis of your business property over a certain number of years. Depreciation starts when you first use the property in your business. It ends when you either take the property out of service, deduct all your depreciable cost or basis, or no longer use the property in your business. The IRS has outlined a useful life (a set number of years) for most assets.
New Assets to be Depreciated:
Date Asset Purchased
Cost of Asset
Date Asset placed in service
New or used?
Disposition of Property
A disposition of property occurs when you sell property for cash or other property, you exchange property for other property, you transfer property to satisfy a debt, you abandon property, your bank forecloses or repossesses your property, or your property is damaged, destroyed, or stolen and you receive property or money in payment.
Asset Sold or Disposed During The Year
Date out of service
Business Use Of Home
Area of home must be exclusively used for business except for storage or day care. Note:Managing rental activities or investments does not qualify for business use of the home.
Business use area (square footage)
Total area of home (square footage)
For Day Care Only/Hours used for day care
Enter below only the expenses paid during the period the home was used for business.Direct expenses benefit only the business use portion of the home. This includes painting or repairs exclusively for the business area.Indirect expenses are for keeping up and running the entire home, such as mortgage interest and property taxes.If you bought or sold your home during 2021, copy this worksheet and fill out one for each home
Repairs and maintenance
Other Business Use of Home Expenses (Itemized):
1) Exclusive Use Test—Business Use of Home
The exclusive use test is met if an area of the home is used only for business. The area can be a room or other separately iden-tifiable space. The space does not need to be marked off by a permanent partition. This test is not met if you use the area both for business and for personal purposes, such as a den used for business during the day and TV viewing during the evening. The exclusive use test is not required for:• An area used on a regular basis for storage of inventory or product samples.• A home used as a day care facility. Storage of inventory or product samples—exception to exclusive use test. If you use part of a home for business to store inventory or product samples, you are not required to meet the exclusive use test. However, you must meet all the following tests.• You are in the business of selling products at wholesale or retail.• The inventory or product samples are kept in the home for use in the business.• You home is the only fixed location of the business.• The storage space is used on a regular basis.• The storage space is a separately identifiable space suitable for storage
2) Regular Use Test—Business Use of Home
The regular use test means you must use a specific area of the home for business on a regular basis. Incidental or occasional business use is not regular use. All facts and circumstances are considered in determining whether the business use is regular.
3) Trade or Business Use Test—Business Use of Home
To satisfy the trade or business use test, the portion of the home used for business must be used in connection with a trade or business. If the business use is for a profit-seeking activity that is not a trade or business, the deduction is not allowed.
4) Principal Place of Business Test—Business Use of Home
A trade or business can have more than one location. To qualify for a business use of home deduction, the home must be the principal place of business for that trade or business. To make this determination, the following are considered.• The relative importance of the activities performed at each place where business is conducted, and• The amount of time spent at each place where business is conducted. A home office qualifies under this test if:• The home office is used exclusively and regularly for administrative or management activities of the trade or business.• There is no other fixed location where substantial administrative or management activities are conducted.
Self-Employment (SE) Tax
SE tax is a Social Security and Medicare tax primarily for indi-viduals who are self-employed. It is similar to the Social Security and Medicare tax withheld from the pay of most wage earners. Your payments of SE tax contribute to your coverage under the Social Security system. Social Security coverage provides you with retirement benefits, disability benefits, survivor benefits, and hospital insurance (Medicare) benefits. • You must pay SE tax if your net earnings from self-employment were $400 or more, or you had church employee income of $108.28 or more. The SE tax rules apply no matter how old you are and even if you are already receiving Social Security or Medicare benefits. • The SE tax rate on net earnings is 15.3% (12.4% for Social Security plus 2.9% for Medicare). Only the first $142,800 (2021) of combined wages, tips, and net earnings is subject to the 12.4% Social Security part of SE tax.
By initialing below you are attesting that the personal and financial information provided to DM Bookkeeping Services is true and accurate. The information listed on the Small Business Tax Organizer and, if applicable, the Schedule C organizer is the information that (I/WE) use to preparer to complete the return.
Should be Empty:
Now create your own Jotform - It's free!
Create your own Jotform