J.K. Lasser's Your Income Tax 2023, 2nd Edition

CHAPTER 40Income or Loss From Your Business or Profession

40.1	Forms of Doing Business	692
40.2	Reporting Self‐Employed Income	692
40.3	Accounting Methods for Reporting Business Income	694
40.4	Tax Reporting Year for Self‐Employed	695
40.5	Reporting Certain Payments and Receipts to the IRS	695
40.6	Filing Schedule C	697
40.7	Deductions for Professionals	702
40.8	Nondeductible Expense Items	703
40.9	How Authors and Artists May Write Off Expenses	704
40.10	Deducting Expenses of a Sideline Business or Hobby	704
40.11	Deducting Expenses of Looking for a New Business	705
40.12	Home Office Deduction	706
40.13	Write‐Off Methods for Home Office Expenses	708
40.14	Allocating Expenses to Business Use	710
40.15	Business Income May Limit Home Office Deductions	711
40.16	Home Office for Sideline Business	713
40.17	Depreciation of Office in Cooperative Apartment	714
40.18	Net Operating Losses (NOLs)	714
40.19	How To Report a Net Operating Loss	715
40.20	Excess Business Losses	716
40.21	Business Credits	717
40.22	Filing Schedule F	718
40.23	Farming Expenses	718
40.24	Qualified Business Income Deduction	719

As a self‐employed person, you report income and expenses from your business or profession separately from your other income, such as income from wages. On Schedule C, you report your business income and itemize your expenses. Any net profit is subject to self‐employment tax, as well as regular tax. A net profit can also be the basis ...