In this part, you will learn how to report your income from a business or profession, and how to reduce your tax liability by claiming expense deductions. Pay special attention to—
Reporting rules for income and expenses on Schedule C (Chapter 40).
Restrictions on deducting home office expenses. Your deduction may be limited by a restrictive income test (Chapter 40).
The increased deduction for qualified domestic production activities income (Chapter 40).
SEP, and SIMPLE, and qualified retirement plan rules if you are self-employed. These plans offer tax deductions for contributions and tax-free accumulation of income within the plan.
Health savings accounts and other medical plans (Chapter 41).
First-year expensing and depreciation write-offs for business assets (Chapter 42).
The IRS mileage allowance as an alternative to claiming operating expenses and depreciation for your business automobile (Chapter 43).
Reporting sales of business property on Form 4797 (Chapter 44).
Computing and paying self-employment tax on self-employment earnings from a business or profession (Chapter 45).