Per Diem Rates from the U.S. General Services Administration
Search by city, state or ZIP code, or by clicking on the map. You can also use the new per diem tool to calculate trip allowances
Rates are set by fiscal year, effective October 1 each year. Find current rates in the continental United States ("CONUS Rates").
Schedule C
The purpose of Schedule C is to report business income and expenses of a sole proprietorship. Schedule C is filed annually. You attach Schedule C to Form 1040, U.S. Individual Income Tax Return
Who Must File Schedule C?
Schedule C is filed by:
- Sole proprietorships
- Single-person LLCs who did not make an election to be taxed as a C or S corporation
- Individuals who received nonemployee compensation reported on Form 1099-MISC.
- Statutory employees
- Full-time life insurance salespersons, full-time traveling salespersons, commission drivers distributing certain foods and beverages, pieceworkers.
More Than One Business
If you own more than one sole proprietorship, a separate Schedule C must be filed for each individual business. You don't need a separate employer identification (EIN) for each business as long as each business is a sole proprietorship and you don't have any employees in any of your businesses.
You can use your social security number as your tax identification number.
For example, if you own and operate Joe's Plumbing Service year-round and Jo's Pool Cleaning service during the summer, you can use your social security number on each Schedule C you file for each business.
After completing each Schedule C for each business, the overall net profit or loss for the three businesses is entered on Schedule 1 (Form 1040), Part I, Line 3. Keep in mind, only one Schedule SE, Self-employment Tax, is required to be filed regardless of the number of Schedule Cs you have.
Example:
- You own and operate three businesses
- Each business is a sole proprietorship.
- Business #1 had a net profit of $12,000, business #2 had a net profit of $8,000 and business #3 had a net loss of $5,000.
- Overall net profit is $15,000
You must file a separate Schedule C for each business. However, you file only one Schedule SE which covers all three businesses. Your overall net profit of $15,000 is entered on Schedule 1 (Form 1040), Part I, Line 3. Self-employment tax is based on your overall net profit of $15,000, which is reduced to $13,852.50 on Schedule SE (.9235 x $15,000).
Husband and Wife Co-owned Sole Proprietorship
If you and your spouse own and operate a sole proprietorship, each spouse would file their own Schedule C under their own name reporting their share of the income and expenses of the business. For example, if each spouse owns a 50% interest in the business, then each spouse would report 50% of the income and expenses on their own separate Schedule C.
In addition, each spouse would file their own separate Schedule SE under their own name and social security number. By doing this, each spouse gets credit towards their own social security and Medicare benefits.
For, example, in the above example, if each business was owned by a husband a wife, each spouse would file three Schedule Cs and and each spouse would file one Schedule SE.
Loss Reported on Schedule C
Tax law distinguishes between an ordinary loss and a capital loss.
When business expenses exceed business income, this results in a net loss. A net business loss is an ordinary loss and is fully deductible (100%) in the year recognized. It may be used to offset other sources of income reported on Form 1040.
A capital loss occurs when a capital asset is sold for less than its original cost. Capital assets include items such as stocks and bonds. A capital loss is not fully deductible in the year it is recognized. A net capital loss is subject to an annual deduction limit of $3,000. If a net loss exceeds $3,000, the excess is carried forward to the following year and taken into account in computing net capital gains and losses of that year.
The character of a capital loss is retained in the carryover year. For example, a short-term loss in year 1 remains a short-term loss in year 2. Keep in mind, the above rules apply to individuals and not to corporations.