Form Schedule C (1040) Schedule C (1040) Profit and Loss From Business

CORRECTED
2009 Schedule C (Form 1040), Profit or Loss From Business
Purpose: This is the first circulated draft of the 2009 Schedule C (Form 1040) for your
review and comments.
TPCC Meeting: None, but one can be arranged if requested.
Prior Revisions: The 2008 Schedule C (Form 1040) can be viewed by clicking on the
following link: http://www.irs.gov/pub/irs-pdf/f1040sc.pdf
Instructions: The 2009 Instructions for Schedule C will be circulated at a later date.
The 2008 instructions can be viewed by clicking on the following link:
http://www.irs.gov/pub/irs-pdf/i1040sc.pdf
Other Products: Circulations of draft tax forms, instructions, notices, and publications
are posted at: http://taxforms.web.irs.gov/Circulations/index.htm
Comments: Please email, fax, call, or mail any comments by June 5, 2009.

Changes to 2009 Schedule C (Form 1040)
All years were update appropriately

FROM:

Email:

Phone:

Robyn Magruder-Matthews

robyn.t.magruder-matthews@irs.gov

202-283-3725
Fax:

202-283-4544

Room:

Date:
05/13/2009

NCFB
C-347

Version A, Cycle 1

Profit or Loss From Business

SCHEDULE C
(Form 1040)

OMB No. 1545-0074

(Sole Proprietorship)

2009

 Partnerships,

joint ventures, etc., generally must file Form 1065 or 1065-B.
 Attach to Form 1040, 1040NR, or 1041.
 See Instructions for Schedule C (Form 1040).

Department of the Treasury
Internal Revenue Service (99)
Name of proprietor

Attachment
Sequence No. 09
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

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.)

F
G
H

City, town or post office, state, and ZIP code
(2)
(3)
(1)
Cash
Accrual
Other (specify) 
Accounting method:
Did you “materially participate” in the operation of this business during 2009? If “No,” see page C-4 for limit on losses
If you started or acquired this business during 2009, check here . . . . . . . . . . . . . . . . .



Part I
1

Income



Yes
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No



DRAFT AS
OF
其
April 13, 2009

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

● This income was reported to you on Form W-2 and the “Statutory employee” box
on that form was checked, or

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● 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.

1

2
3

Returns and allowances .
Subtract line 2 from line 1

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2
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4
5
6
7

Cost of goods sold (from line 42 on page 2)
Gross profit. Subtract line 4 from line 3 .

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

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4
5
6



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Part II

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Advertising .

9
10

Car and truck expenses (see
page C-5) . . . . .
Commissions and fees .

9
10

11
12

Contract labor (see page C-5)
Depletion . . . . .

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12

13

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

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16
a
b

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

8

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18

Office expense .

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19
20

Pension and profit-sharing plans .
Rent or lease (see page C-6):
Vehicles, machinery, and equipment

19
20a

Other business property . . .
Repairs and maintenance . . .
Supplies (not included in Part III) .

20b
21
22

Taxes and licenses . . . . .
Travel, meals, and entertainment:
Travel . . . . . . . . .

23
24a

25

Deductible meals and
entertainment (see page C-7) .
Utilities . . . . . . .

24b
25

26

Wages (less employment credits) .

26

27

Other expenses (from line 48 on
page 2) . . . . . . . .

27

a
b
21
22
23
24

13

a
b

Employee benefit programs
(other than on line 19) . .
Insurance (other than health)

14
15

Interest:
Mortgage (paid to banks, etc.)
Other . . . . . .

16a
16b

28

Legal and professional
17
services . . . . . .
Total expenses before expenses for business use of home. Add lines 8 through 27

29
30
31

Tentative profit or (loss). Subtract line 28 from line 7 . . .
Expenses for business use of your home. Attach Form 8829
Net profit or (loss). Subtract line 30 from line 29.

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28

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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.
● If a loss, you must go to line 32.
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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Cat. No. 11334P

其

其

31

32a
32b

All investment is at risk.
Some investment is not
at risk.
Schedule C (Form 1040) 2009

Version A, Cycle 1
Page 2

Schedule C (Form 1040) 2009

Part III

Cost of Goods Sold (see page C-8)

33

Method(s) used to
value closing inventory:

34

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

a

b

Cost

c

Lower of cost or market

Other (attach explanation)

35

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

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35

36

Purchases less cost of items withdrawn for personal use

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36

37

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

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37

38

Materials and supplies

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38

39

Other costs .

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40

Add lines 35 through 39 .

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41

Inventory at end of year .

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42

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39

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40

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41

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

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42

Part IV

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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 2009, enter the number of miles you used your vehicle for:

a

No

DRAFT AS OF
April 13, 2009
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Yes

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b Commuting (see instructions)

Business

c Other

45

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

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Yes

No

46

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

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Yes

No

47a

Do you have evidence to support your deduction?

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Yes

No

If “Yes,” is the evidence written?

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Yes

No

b

Part V

48

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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 .

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48
Schedule C (Form 1040) 2009