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PROFIT & LOSS from BUSINESS SCHEDULE C DATA SHEET Form

PROFIT & LOSS from BUSINESS SCHEDULE C DATA SHEET Form

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Instructions and help about profit loss form

how to avoid an irs audit in terms of consistently deducting a loss on a self-employed business a sole proprietorship that you report on a schedule c if you have losses in three of five years reported on a schedule c then this is going to give rise to whether or not consideration is for this business being a for-profit business you must establish that you have a profit mode motive code section 183 talks about the profit motive you must establish that you're carrying on this this activity as a business let's say that you're a woodworker and you've bought a lot of equipment a lot of wood and you've made a lot of very nice furniture for your home you do have to establish that you have a profit motive in the purchase of this equipment these supplies creating items for yourself is not a deductible business expense it's not a business you have to show that you have operated your business in a business like manner that you have a separate busine

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