federal tax exam

2016 1040 Schedule A.pdf
SCHEDULE A (Form 1040)

Department of the Treasury Internal Revenue Service (99)

Itemized Deductions ▶ Information about Schedule A and its separate instructions is at www.irs.gov/schedulea.

▶ Attach to Form 1040.

OMB No. 1545-0074

2016 Attachment Sequence No. 07

Name(s) shown on Form 1040 Your social security number

Medical and Dental Expenses

Caution: Do not include expenses reimbursed or paid by others. 1 Medical and dental expenses (see instructions) . . . . . 1 2 Enter amount from Form 1040, line 38 2 3 Multiply line 2 by 10% (0.10). But if either you or your spouse was

born before January 2, 1952, multiply line 2 by 7.5% (0.075) instead 3 4 Subtract line 3 from line 1. If line 3 is more than line 1, enter -0- . . . . . . . . 4

Taxes You Paid

5 State and local (check only one box): a Income taxes, or b General sales taxes } . . . . . . . . . . . 5

6 Real estate taxes (see instructions) . . . . . . . . . 6 7 Personal property taxes . . . . . . . . . . . . . 7 8 Other taxes. List type and amount ▶

8 9 Add lines 5 through 8 . . . . . . . . . . . . . . . . . . . . . . 9

Interest You Paid

Note: Your mortgage interest deduction may be limited (see instructions).

10 Home mortgage interest and points reported to you on Form 1098 10 11

Home mortgage interest not reported to you on Form 1098. If paid to the person from whom you bought the home, see instructions and show that person’s name, identifying no., and address ▶

11 12

Points not reported to you on Form 1098. See instructions for special rules . . . . . . . . . . . . . . . . . 12

13 Mortgage insurance premiums (see instructions) . . . . . 13 14 Investment interest. Attach Form 4952 if required. (See instructions.) 14 15 Add lines 10 through 14 . . . . . . . . . . . . . . . . . . . . . 15

Gifts to Charity If you made a gift and got a benefit for it, see instructions.

16

Gifts by cash or check. If you made any gift of $250 or more, see instructions . . . . . . . . . . . . . . . . 16

17

Other than by cash or check. If any gift of $250 or more, see instructions. You must attach Form 8283 if over $500 . . . 17

18 Carryover from prior year . . . . . . . . . . . . 18 19 Add lines 16 through 18 . . . . . . . . . . . . . . . . . . . . . 19

Casualty and Theft Losses 20 Casualty or theft loss(es). Attach Form 4684. (See instructions.) . . . . . . . . 20 Job Expenses and Certain Miscellaneous Deductions

21

Unreimbursed employee expenses—job travel, union dues, job education, etc. Attach Form 2106 or 2106-EZ if required. (See instructions.) ▶ 21

22 Tax preparation fees . . . . . . . . . . . . . 22 23

Other expenses—investment, safe deposit box, etc. List type and amount ▶

23 24 Add lines 21 through 23 . . . . . . . . . . . . 24 25 Enter amount from Form 1040, line 38 25 26 Multiply line 25 by 2% (0.02) . . . . . . . . . . 26 27 Subtract line 26 from line 24. If line 26 is more than line 24, enter -0- . . . . . . 27

Other Miscellaneous Deductions

28 Other—from list in instructions. List type and amount ▶

28 Total Itemized Deductions

29

Is Form 1040, line 38, over $155,650?

29 No. Your deduction is not limited. Add the amounts in the far right column for lines 4 through 28. Also, enter this amount on Form 1040, line 40. } . .Yes. Your deduction may be limited. See the Itemized Deductions Worksheet in the instructions to figure the amount to enter.

30

If you elect to itemize deductions even though they are less than your standard deduction, check here . . . . . . . . . . . . . . . . . . . ▶

For Paperwork Reduction Act Notice, see Form 1040 instructions. Cat. No. 17145C Schedule A (Form 1040) 2016

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2016 1040 Schedule C (1).pdf
SCHEDULE C (Form 1040)

Department of the Treasury Internal Revenue Service (99)

Profit or Loss From Business (Sole Proprietorship)

▶ Information about Schedule C and its separate instructions is at www.irs.gov/schedulec. ▶ Attach to Form 1040, 1040NR, or 1041; partnerships generally must file Form 1065.

OMB No. 1545-0074

2016 Attachment Sequence No. 09

Name of proprietor Social security number (SSN)

A Principal business or profession, including product or service (see instructions) B Enter code from instructions ▶

C Business name. If no separate business name, leave blank. D Employer ID number (EIN), (see instr.)

E Business address (including suite or room no.) ▶

City, town or post office, state, and ZIP code

F Accounting method: (1) Cash (2) Accrual (3) Other (specify) ▶

G Did you “materially participate” in the operation of this business during 2016? If “No,” see instructions for limit on losses . Yes No

H If you started or acquired this business during 2016, check here . . . . . . . . . . . . . . . . . ▶

I Did you make any payments in 2016 that would require you to file Form(s) 1099? (see instructions) . . . . . . . . Yes No

J If "Yes," did you or will you file required Forms 1099? . . . . . . . . . . . . . . . . . . . . . Yes No

Part I Income 1 Gross receipts or sales. See instructions for line 1 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 . . . . . . . . . ▶ 1

2 Returns and allowances . . . . . . . . . . . . . . . . . . . . . . . . . 2

3 Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . 3

4 Cost of goods sold (from line 42) . . . . . . . . . . . . . . . . . . . . . . 4

5 Gross profit. Subtract line 4 from line 3 . . . . . . . . . . . . . . . . . . . . 5

6 Other income, including federal and state gasoline or fuel tax credit or refund (see instructions) . . . . 6

7 Gross income. Add lines 5 and 6 . . . . . . . . . . . . . . . . . . . . . ▶ 7 Part II Expenses. Enter expenses for business use of your home only on line 30.

8 Advertising . . . . . 8

9

Car and truck expenses (see instructions) . . . . . 9

10 Commissions and fees . 10

11 Contract labor (see instructions) 11

12 Depletion . . . . . 12 13

Depreciation and section 179 expense deduction (not included in Part III) (see instructions) . . . . . 13

14

Employee benefit programs (other than on line 19) . . 14

15 Insurance (other than health) 15

16 Interest:

a Mortgage (paid to banks, etc.) 16a

b Other . . . . . . 16b 17 Legal and professional services 17

18 Office expense (see instructions) 18

19 Pension and profit-sharing plans . 19

20 Rent or lease (see instructions):

a Vehicles, machinery, and equipment 20a

b Other business property . . . 20b

21 Repairs and maintenance . . . 21

22 Supplies (not included in Part III) . 22

23 Taxes and licenses . . . . . 23

24 Travel, meals, and entertainment:

a Travel . . . . . . . . . 24a

b

Deductible meals and entertainment (see instructions) . 24b

25 Utilities . . . . . . . . 25

26 Wages (less employment credits) . 26

27 a Other expenses (from line 48) . . 27a

b Reserved for future use . . . 27b

28 Total expenses before expenses for business use of home. Add lines 8 through 27a . . . . . . ▶ 28

29 Tentative profit or (loss). Subtract line 28 from line 7 . . . . . . . . . . . . . . . . . 29

30 Expenses for business use of your home. Do not report these expenses elsewhere. Attach Form 8829 unless using the simplified method (see instructions). Simplified method filers only: enter the total square footage of: (a) your home:

and (b) the part of your home used for business: . Use the Simplified

Method Worksheet in the instructions to figure the amount to enter on line 30 . . . . . . . . . 30

31 Net profit or (loss). Subtract line 30 from line 29.

• If a profit, enter on both Form 1040, line 12 (or Form 1040NR, line 13) and on Schedule SE, line 2. (If you checked the box on line 1, see instructions). Estates and trusts, enter on Form 1041, line 3.

• If a loss, you must go to line 32. } 31

32 If you have a loss, check the box that describes your investment in this activity (see instructions).

• If you checked 32a, enter the loss on both Form 1040, line 12, (or Form 1040NR, line 13) and on Schedule SE, line 2. (If you checked the box on line 1, see the line 31 instructions). Estates and trusts, enter on Form 1041, line 3. • If you checked 32b, you must attach Form 6198. Your loss may be limited.

} 32a All investment is at risk. 32b Some investment is not at risk.

For Paperwork Reduction Act Notice, see the separate instructions. Cat. No. 11334P Schedule C (Form 1040) 2016

Schedule C (Form 1040) 2016 Page 2 Part III Cost of Goods Sold (see instructions)

33

Method(s) used to value closing inventory: a Cost b Lower of cost or market c Other (attach explanation)

34

Was there any change in determining quantities, costs, or valuations between opening and closing inventory? If “Yes,” attach explanation . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No

35 Inventory at beginning of year. If different from last year’s closing inventory, attach explanation . . . 35

36 Purchases less cost of items withdrawn for personal use . . . . . . . . . . . . . . 36

37 Cost of labor. Do not include any amounts paid to yourself . . . . . . . . . . . . . . 37

38 Materials and supplies . . . . . . . . . . . . . . . . . . . . . . . . 38

39 Other costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

40 Add lines 35 through 39 . . . . . . . . . . . . . . . . . . . . . . . . 40

41 Inventory at end of year . . . . . . . . . . . . . . . . . . . . . . . . 41

42 Cost of goods sold. Subtract line 41 from line 40. Enter the result here and on line 4 . . . . . . 42 Part IV 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 to find out if you must file Form 4562.

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 2016, enter the number of miles you used your vehicle for:

a Business b Commuting (see instructions) c Other

45 Was your vehicle available for personal use during off-duty hours? . . . . . . . . . . . . . . . Yes No

46 Do you (or your spouse) have another vehicle available for personal use?. . . . . . . . . . . . . . Yes No

47a Do you have evidence to support your deduction? . . . . . . . . . . . . . . . . . . . . Yes No

b If “Yes,” is the evidence written? . . . . . . . . . . . . . . . . . . . . . . . . . Yes No

Part V Other Expenses. List below business expenses not included on lines 8–26 or line 30.

48 Total other expenses. Enter here and on line 27a . . . . . . . . . . . . . . . . 48

Schedule C (Form 1040) 2016

Version A, Cycle 3

INTERNAL USE ONLY DRAFT AS OF October 11, 2016

2016 Form 1040 (Schedule C)

SE:W:CAR:MP

Profit or Loss From Business

SCHEDULE C (Form 1040)

Department of the Treasury Internal Revenue Service (99)

Profit or Loss From Business

(Sole Proprietorship)

▶ Information about Schedule C and its separate instructions is at www.irs.gov/schedulec.

▶ Attach to Form 1040, 1040NR, or 1041; partnerships generally must file Form 1065.

OMB No. 1545-0074

2016

2016. Catalog Number 11334P.

Attachment 

Sequence No. 09 

Attachment Sequence Number 09. For Paperwork Reduction Act Notice, see the separate instructions.

B  Enter code from instructions 

E

F

Accounting method:

(1)

(2)

(3)

G

Did you “materially participate” in the operation of this business during 2016? If “No,” see instructions for limit on losses                             

H

If you started or acquired this business during 2016, check here          ▶

I

Did you make any payments in 2016 that would require you to file Form(s) 1099? (see instructions)          

J

If "Yes," did you or will you file required Forms 1099?          

Part I

Income

1

Gross receipts or sales. See instructions for line 1 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                   ▶

1

2

Returns and allowances          

2

3

Subtract line 2 from line 1         

3

4

Cost of goods sold (from line 42)          

4

5

Gross profit.  Subtract line 4 from line 3                  

5

6

Other income, including federal and state gasoline or fuel tax credit or refund (see instructions)         

6

7

Gross income.  Add lines 5 and 6          ▶

7

Part II

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

8

Advertising         

8

 

Car and truck expenses (see instructions)         

9

10

Commissions and fees         

10

11

Contract labor (see instructions)

11

12

Depletion                  

12

13 

 

 

 

Depreciation and section 179  expense deduction (not  included in Part III) (see instructions)         

13

14 

 

Employee benefit programs  (other than on line 19)         

14

15

Insurance (other than health)         

15

16

Interest:

a

Mortgage (paid to banks, etc.)

16a

b

Other         

16b

17

Legal and professional services

17

18

Office expense (see instructions)

18

19

Pension and profit-sharing plans         

19

20

Rent or lease (see instructions):

a

Vehicles, machinery, and equipment

20a

b

Other business property         

20b

21

Repairs and maintenance         

21

22

Supplies (not included in Part III)                  

22

23

Taxes and licenses         

23

24

Travel, meals, and entertainment:

a

Travel         

24a

b

 

Deductible meals and 

entertainment (see instructions)         

24b

25

Utilities         

25

26

Wages (less employment credits)         

26

27

a

Other expenses (from line 48)          

27a

b

Reserved for future use         

27b

28

Total expenses before expenses for business use of home. Add lines 8 through 27a         ▶

28

29

Tentative profit or (loss). Subtract line 28 from line 7         

29

30

Expenses for business use of your home. Do not report these expenses elsewhere. Attach Form 8829 unless using the simplified method (see instructions). 

. Use the Simplified

Method Worksheet in the instructions to figure the amount to enter on line 30          

30

31

Net profit or (loss).  Subtract line 30 from line 29. 

•  If a profit, enter on both Form 1040, line 12 (or Form 1040NR, line 13) and on Schedule SE, line 2. (If you checked the box on line 1, see instructions). Estates and trusts, enter on Form 1041, line 3. 

•  If a loss, you must  go to line 32.

}

31

32

If you have a loss, check the box that describes your investment in this activity (see instructions).

•  If you checked 32a, enter the loss on both Form 1040, line 12, (or Form 1040NR, line 13) and on Schedule SE, line 2. (If you checked the box on line 1, see the line 31 instructions). Estates and trusts, enter on Form 1041, line 3. 

•  If you checked 32b, you must attach Form 6198. Your loss may be limited. 

}

32a

32b

For Paperwork Reduction Act Notice, see the separate instructions.

Cat. No. 11334P

Schedule C (Form 1040) 2016

Schedule C (Form 1040) 2016

Page 2 

Part III

Cost of Goods Sold  (see instructions) 

33 

 

Method(s) used to

value closing inventory: 

a

b

c

34 

 

Was there any change in determining quantities, costs, or valuations between opening and closing inventory?

If “Yes,” attach explanation         

35

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

35

36

Purchases less cost of items withdrawn for personal use         

36

37

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

37

38

Materials and supplies         

38

39

Other costs         

39

40

Add lines 35 through 39         

40

41

Inventory at end of year         

41

42

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

42

Part IV

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 to find out if you must file Form 4562. 

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 2016, enter the number of miles you used your vehicle for:

a

45

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

46

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

47

a

Do you have evidence to support your deduction?         

b

If “Yes,” is the evidence written?         

Part V

Other Expenses.  List below business expenses not included on lines 8–26 or line 30. 

48

Total other expenses.  Enter here and on line 27a         

48

Schedule C (Form 1040) 2016

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2016 1040 Schedule C.pdf
SCHEDULE C (Form 1040)

Department of the Treasury Internal Revenue Service (99)

Profit or Loss From Business (Sole Proprietorship)

▶ Information about Schedule C and its separate instructions is at www.irs.gov/schedulec. ▶ Attach to Form 1040, 1040NR, or 1041; partnerships generally must file Form 1065.

OMB No. 1545-0074

2016 Attachment Sequence No. 09

Name of proprietor Social security number (SSN)

A Principal business or profession, including product or service (see instructions) B Enter code from instructions ▶

C Business name. If no separate business name, leave blank. D Employer ID number (EIN), (see instr.)

E Business address (including suite or room no.) ▶

City, town or post office, state, and ZIP code

F Accounting method: (1) Cash (2) Accrual (3) Other (specify) ▶

G Did you “materially participate” in the operation of this business during 2016? If “No,” see instructions for limit on losses . Yes No

H If you started or acquired this business during 2016, check here . . . . . . . . . . . . . . . . . ▶

I Did you make any payments in 2016 that would require you to file Form(s) 1099? (see instructions) . . . . . . . . Yes No

J If "Yes," did you or will you file required Forms 1099? . . . . . . . . . . . . . . . . . . . . . Yes No

Part I Income 1 Gross receipts or sales. See instructions for line 1 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 . . . . . . . . . ▶ 1

2 Returns and allowances . . . . . . . . . . . . . . . . . . . . . . . . . 2

3 Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . 3

4 Cost of goods sold (from line 42) . . . . . . . . . . . . . . . . . . . . . . 4

5 Gross profit. Subtract line 4 from line 3 . . . . . . . . . . . . . . . . . . . . 5

6 Other income, including federal and state gasoline or fuel tax credit or refund (see instructions) . . . . 6

7 Gross income. Add lines 5 and 6 . . . . . . . . . . . . . . . . . . . . . ▶ 7 Part II Expenses. Enter expenses for business use of your home only on line 30.

8 Advertising . . . . . 8

9

Car and truck expenses (see instructions) . . . . . 9

10 Commissions and fees . 10

11 Contract labor (see instructions) 11

12 Depletion . . . . . 12 13

Depreciation and section 179 expense deduction (not included in Part III) (see instructions) . . . . . 13

14

Employee benefit programs (other than on line 19) . . 14

15 Insurance (other than health) 15

16 Interest:

a Mortgage (paid to banks, etc.) 16a

b Other . . . . . . 16b 17 Legal and professional services 17

18 Office expense (see instructions) 18

19 Pension and profit-sharing plans . 19

20 Rent or lease (see instructions):

a Vehicles, machinery, and equipment 20a

b Other business property . . . 20b

21 Repairs and maintenance . . . 21

22 Supplies (not included in Part III) . 22

23 Taxes and licenses . . . . . 23

24 Travel, meals, and entertainment:

a Travel . . . . . . . . . 24a

b

Deductible meals and entertainment (see instructions) . 24b

25 Utilities . . . . . . . . 25

26 Wages (less employment credits) . 26

27 a Other expenses (from line 48) . . 27a

b Reserved for future use . . . 27b

28 Total expenses before expenses for business use of home. Add lines 8 through 27a . . . . . . ▶ 28

29 Tentative profit or (loss). Subtract line 28 from line 7 . . . . . . . . . . . . . . . . . 29

30 Expenses for business use of your home. Do not report these expenses elsewhere. Attach Form 8829 unless using the simplified method (see instructions). Simplified method filers only: enter the total square footage of: (a) your home:

and (b) the part of your home used for business: . Use the Simplified

Method Worksheet in the instructions to figure the amount to enter on line 30 . . . . . . . . . 30

31 Net profit or (loss). Subtract line 30 from line 29.

• If a profit, enter on both Form 1040, line 12 (or Form 1040NR, line 13) and on Schedule SE, line 2. (If you checked the box on line 1, see instructions). Estates and trusts, enter on Form 1041, line 3.

• If a loss, you must go to line 32. } 31

32 If you have a loss, check the box that describes your investment in this activity (see instructions).

• If you checked 32a, enter the loss on both Form 1040, line 12, (or Form 1040NR, line 13) and on Schedule SE, line 2. (If you checked the box on line 1, see the line 31 instructions). Estates and trusts, enter on Form 1041, line 3. • If you checked 32b, you must attach Form 6198. Your loss may be limited.

} 32a All investment is at risk. 32b Some investment is not at risk.

For Paperwork Reduction Act Notice, see the separate instructions. Cat. No. 11334P Schedule C (Form 1040) 2016

Schedule C (Form 1040) 2016 Page 2 Part III Cost of Goods Sold (see instructions)

33

Method(s) used to value closing inventory: a Cost b Lower of cost or market c Other (attach explanation)

34

Was there any change in determining quantities, costs, or valuations between opening and closing inventory? If “Yes,” attach explanation . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No

35 Inventory at beginning of year. If different from last year’s closing inventory, attach explanation . . . 35

36 Purchases less cost of items withdrawn for personal use . . . . . . . . . . . . . . 36

37 Cost of labor. Do not include any amounts paid to yourself . . . . . . . . . . . . . . 37

38 Materials and supplies . . . . . . . . . . . . . . . . . . . . . . . . 38

39 Other costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

40 Add lines 35 through 39 . . . . . . . . . . . . . . . . . . . . . . . . 40

41 Inventory at end of year . . . . . . . . . . . . . . . . . . . . . . . . 41

42 Cost of goods sold. Subtract line 41 from line 40. Enter the result here and on line 4 . . . . . . 42 Part IV 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 to find out if you must file Form 4562.

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 2016, enter the number of miles you used your vehicle for:

a Business b Commuting (see instructions) c Other

45 Was your vehicle available for personal use during off-duty hours? . . . . . . . . . . . . . . . Yes No

46 Do you (or your spouse) have another vehicle available for personal use?. . . . . . . . . . . . . . Yes No

47a Do you have evidence to support your deduction? . . . . . . . . . . . . . . . . . . . . Yes No

b If “Yes,” is the evidence written? . . . . . . . . . . . . . . . . . . . . . . . . . Yes No

Part V Other Expenses. List below business expenses not included on lines 8–26 or line 30.

48 Total other expenses. Enter here and on line 27a . . . . . . . . . . . . . . . . 48

Schedule C (Form 1040) 2016

Version A, Cycle 3

INTERNAL USE ONLY DRAFT AS OF October 11, 2016

2016 Form 1040 (Schedule C)

SE:W:CAR:MP

Profit or Loss From Business

SCHEDULE C (Form 1040)

Department of the Treasury Internal Revenue Service (99)

Profit or Loss From Business

(Sole Proprietorship)

▶ Information about Schedule C and its separate instructions is at www.irs.gov/schedulec.

▶ Attach to Form 1040, 1040NR, or 1041; partnerships generally must file Form 1065.

OMB No. 1545-0074

2016

2016. Catalog Number 11334P.

Attachment 

Sequence No. 09 

Attachment Sequence Number 09. For Paperwork Reduction Act Notice, see the separate instructions.

B  Enter code from instructions 

E

F

Accounting method:

(1)

(2)

(3)

G

Did you “materially participate” in the operation of this business during 2016? If “No,” see instructions for limit on losses                             

H

If you started or acquired this business during 2016, check here          ▶

I

Did you make any payments in 2016 that would require you to file Form(s) 1099? (see instructions)          

J

If "Yes," did you or will you file required Forms 1099?          

Part I

Income

1

Gross receipts or sales. See instructions for line 1 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                   ▶

1

2

Returns and allowances          

2

3

Subtract line 2 from line 1         

3

4

Cost of goods sold (from line 42)          

4

5

Gross profit.  Subtract line 4 from line 3                  

5

6

Other income, including federal and state gasoline or fuel tax credit or refund (see instructions)         

6

7

Gross income.  Add lines 5 and 6          ▶

7

Part II

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

8

Advertising         

8

 

Car and truck expenses (see instructions)         

9

10

Commissions and fees         

10

11

Contract labor (see instructions)

11

12

Depletion                  

12

13 

 

 

 

Depreciation and section 179  expense deduction (not  included in Part III) (see instructions)         

13

14 

 

Employee benefit programs  (other than on line 19)         

14

15

Insurance (other than health)         

15

16

Interest:

a

Mortgage (paid to banks, etc.)

16a

b

Other         

16b

17

Legal and professional services

17

18

Office expense (see instructions)

18

19

Pension and profit-sharing plans         

19

20

Rent or lease (see instructions):

a

Vehicles, machinery, and equipment

20a

b

Other business property         

20b

21

Repairs and maintenance         

21

22

Supplies (not included in Part III)                  

22

23

Taxes and licenses         

23

24

Travel, meals, and entertainment:

a

Travel         

24a

b

 

Deductible meals and 

entertainment (see instructions)         

24b

25

Utilities         

25

26

Wages (less employment credits)         

26

27

a

Other expenses (from line 48)          

27a

b

Reserved for future use         

27b

28

Total expenses before expenses for business use of home. Add lines 8 through 27a         ▶

28

29

Tentative profit or (loss). Subtract line 28 from line 7         

29

30

Expenses for business use of your home. Do not report these expenses elsewhere. Attach Form 8829 unless using the simplified method (see instructions). 

. Use the Simplified

Method Worksheet in the instructions to figure the amount to enter on line 30          

30

31

Net profit or (loss).  Subtract line 30 from line 29. 

•  If a profit, enter on both Form 1040, line 12 (or Form 1040NR, line 13) and on Schedule SE, line 2. (If you checked the box on line 1, see instructions). Estates and trusts, enter on Form 1041, line 3. 

•  If a loss, you must  go to line 32.

}

31

32

If you have a loss, check the box that describes your investment in this activity (see instructions).

•  If you checked 32a, enter the loss on both Form 1040, line 12, (or Form 1040NR, line 13) and on Schedule SE, line 2. (If you checked the box on line 1, see the line 31 instructions). Estates and trusts, enter on Form 1041, line 3. 

•  If you checked 32b, you must attach Form 6198. Your loss may be limited. 

}

32a

32b

For Paperwork Reduction Act Notice, see the separate instructions.

Cat. No. 11334P

Schedule C (Form 1040) 2016

Schedule C (Form 1040) 2016

Page 2 

Part III

Cost of Goods Sold  (see instructions) 

33 

 

Method(s) used to

value closing inventory: 

a

b

c

34 

 

Was there any change in determining quantities, costs, or valuations between opening and closing inventory?

If “Yes,” attach explanation         

35

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

35

36

Purchases less cost of items withdrawn for personal use         

36

37

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

37

38

Materials and supplies         

38

39

Other costs         

39

40

Add lines 35 through 39         

40

41

Inventory at end of year         

41

42

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

42

Part IV

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 to find out if you must file Form 4562. 

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 2016, enter the number of miles you used your vehicle for:

a

45

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

46

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

47

a

Do you have evidence to support your deduction?         

b

If “Yes,” is the evidence written?         

Part V

Other Expenses.  List below business expenses not included on lines 8–26 or line 30. 

48

Total other expenses.  Enter here and on line 27a         

48

Schedule C (Form 1040) 2016

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