TOTAL OPERATING EXPENSES 28,193 29,193 NET INCOME (LOSS) $70,767 $70,814 Scott also mentioned the following: The expenses for dues and subscriptions were his country club membership dues for the year. $425 of the charitable contributions were made to a political action committee. Scott does not generate income from the sale of goods and therefore does not record supplies and wages as part of cost of goods sold. Scott placed a business auto in service on January 1, 2018 and drove it 3,824 miles for business, 3,250 miles for commuting, and 4,500 miles for nonbusiness purposes. His wife has a car for personal use. He maintains written records for the business use of the car. Meals and Entertainment expense includes $2,500 related to golf greens fees for entertaining clients, $1,000 for business meals provided by restaurants, and $900 for the office holiday party for all employees. Complete Schedule C for Scott showing Scott's net taxable profit from self-employment. Assume Scott has evidence to support his deductions. If required, only use the minus sign to indicate a net loss. When required, round amounts to the nearest dollar. OMB No. 1545-0074 SCHEDULE C (Form 1040) Profit or Loss From Business (Sole Proprietorship) Go to www.irs.gov/Schedule for instructions and the latest information. Attach to Form 1040, 1040-SR, 1040-NR, or 1041; partnerships must generally file Form 1065. 2021 Department of the Treasury Internal Revenue Service (99) Attachment Sequence No. 09 Name of proprietor Scott Butterfield Social security number (SSN) 644-47-7833 A | Principal business or profession, including product or service (see instructions) Accounting Services Enter code from instructions 541211 Business name. If no separate business name, leave blank. D Employer ID number (EIN), (see instr.) > Yes No E Business address (including suite or room no.) 678 Third Street City, town or post office, state, and ZIP code Riverside, CA 92860 F Accounting method: (1) * Cash (2) Accrual (3) - Other (specify) G Did you "materially participate in the operation of this business during 2021? If "No," see instructions for limit on losses H If you started or acquired this business during 2021, check here .. I Did you make any payments in 2021 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 0 Yes . No Yes 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. 1 135,219 2 Returns and allowances. 2 3 Subtract line 2 from line 1 3 135,219 4 Cost of goods sold (from line 42). 4 5 Gross profit. Subtract line 4 from line 3.......... 5 135,219 Gross income. Add lines 5 and 6..... Part II Expenses. Enter expenses for business use of your home only on line 30. 8 Advertising 8 300 18 Office expense (see instructions) 18 9 Car and truck expenses (see 19 Pension and profit-sharing plans 19 instructions) 9 20 Rent or lease (see instructions): 10 Commissions and fees 10 a Vehicles, machinery, and equipment ... 20a 11 Contract labor (see instructions) 11 b Other business property 20b 12 Depletion ..... 12 21 Repairs and maintenance. 21 13 Depreciation and section 179 22 Supplies (not included in Part III) .... 22 expense deduction (not included 23 Taxes and licenses. 23 in Part III) (see instructions) 13 24 Travel and meals: 14 Employee benefit programs a Travel ... 24a (other than on line 19).. 14 b Deductible meals 15 Insurance (other than health) 15 (see instructions) 24b 16 Interest (see instructions): 25 Utilities 25 a Mortgage (paid to banks, etc.) 16a 26 Wages (less employment credits).... 26 b Other .... 16b 27a Other expenses (from line 48) 27a 17 27b 17 Legal and professional services b Reserved for future use 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 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 31 Net profit or (loss). Subtract line 30 from line 29. If a profit, enter on both Schedule 1 (Form 1040), line 3, 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 32a 0 All investment is at risk. 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 Schedule 1 (Form 1040), line 3, 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. 32b Some investment is not at risk. For Paperwork Reduction Act Notice, see the separate instructions. Cat. No. 11334P Schedule C (Form 1040) 2021 Schedule C (Form 1040) 2021 Page 2 Part III Cost of Goods Sold (see instructions) 33 Method(s) used to value closing inventory: 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 .. D 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 41 Inventory at end of year 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) 1/1/18 44 Of the total number of miles you drove your vehicle during 2021, enter the number of miles you used your vehicle for: a Business b Commuting (see instructions) Other 45 Was your vehicle available for personal use during off-duty hours? Yes 46 Do you (or your spouse) have another vehicle available for personal use? Yes 47a Do you have evidence to support your deduction?.. Yes b If "Yes," is the evidence written? .. Yes Part V Other Expenses. List below business expenses not included on lines 8-26 or line 30. Continuing education Printing 48 Total other expenses. Enter here and on line 27a . 48 Schedule C (Form 1040) 2021 TOTAL OPERATING EXPENSES 28,193 29,193 NET INCOME (LOSS) $70,767 $70,814 Scott also mentioned the following: The expenses for dues and subscriptions were his country club membership dues for the year. $425 of the charitable contributions were made to a political action committee. Scott does not generate income from the sale of goods and therefore does not record supplies and wages as part of cost of goods sold. Scott placed a business auto in service on January 1, 2018 and drove it 3,824 miles for business, 3,250 miles for commuting, and 4,500 miles for nonbusiness purposes. His wife has a car for personal use. He maintains written records for the business use of the car. Meals and Entertainment expense includes $2,500 related to golf greens fees for entertaining clients, $1,000 for business meals provided by restaurants, and $900 for the office holiday party for all employees. Complete Schedule C for Scott showing Scott's net taxable profit from self-employment. Assume Scott has evidence to support his deductions. If required, only use the minus sign to indicate a net loss. When required, round amounts to the nearest dollar. OMB No. 1545-0074 SCHEDULE C (Form 1040) Profit or Loss From Business (Sole Proprietorship) Go to www.irs.gov/Schedule for instructions and the latest information. Attach to Form 1040, 1040-SR, 1040-NR, or 1041; partnerships must generally file Form 1065. 2021 Department of the Treasury Internal Revenue Service (99) Attachment Sequence No. 09 Name of proprietor Scott Butterfield Social security number (SSN) 644-47-7833 A | Principal business or profession, including product or service (see instructions) Accounting Services Enter code from instructions 541211 Business name. If no separate business name, leave blank. D Employer ID number (EIN), (see instr.) > Yes No E Business address (including suite or room no.) 678 Third Street City, town or post office, state, and ZIP code Riverside, CA 92860 F Accounting method: (1) * Cash (2) Accrual (3) - Other (specify) G Did you "materially participate in the operation of this business during 2021? If "No," see instructions for limit on losses H If you started or acquired this business during 2021, check here .. I Did you make any payments in 2021 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 0 Yes . No Yes 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. 1 135,219 2 Returns and allowances. 2 3 Subtract line 2 from line 1 3 135,219 4 Cost of goods sold (from line 42). 4 5 Gross profit. Subtract line 4 from line 3.......... 5 135,219 Gross income. Add lines 5 and 6..... Part II Expenses. Enter expenses for business use of your home only on line 30. 8 Advertising 8 300 18 Office expense (see instructions) 18 9 Car and truck expenses (see 19 Pension and profit-sharing plans 19 instructions) 9 20 Rent or lease (see instructions): 10 Commissions and fees 10 a Vehicles, machinery, and equipment ... 20a 11 Contract labor (see instructions) 11 b Other business property 20b 12 Depletion ..... 12 21 Repairs and maintenance. 21 13 Depreciation and section 179 22 Supplies (not included in Part III) .... 22 expense deduction (not included 23 Taxes and licenses. 23 in Part III) (see instructions) 13 24 Travel and meals: 14 Employee benefit programs a Travel ... 24a (other than on line 19).. 14 b Deductible meals 15 Insurance (other than health) 15 (see instructions) 24b 16 Interest (see instructions): 25 Utilities 25 a Mortgage (paid to banks, etc.) 16a 26 Wages (less employment credits).... 26 b Other .... 16b 27a Other expenses (from line 48) 27a 17 27b 17 Legal and professional services b Reserved for future use 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 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 31 Net profit or (loss). Subtract line 30 from line 29. If a profit, enter on both Schedule 1 (Form 1040), line 3, 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 32a 0 All investment is at risk. 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 Schedule 1 (Form 1040), line 3, 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. 32b Some investment is not at risk. For Paperwork Reduction Act Notice, see the separate instructions. Cat. No. 11334P Schedule C (Form 1040) 2021 Schedule C (Form 1040) 2021 Page 2 Part III Cost of Goods Sold (see instructions) 33 Method(s) used to value closing inventory: 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 .. D 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 41 Inventory at end of year 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) 1/1/18 44 Of the total number of miles you drove your vehicle during 2021, enter the number of miles you used your vehicle for: a Business b Commuting (see instructions) Other 45 Was your vehicle available for personal use during off-duty hours? Yes 46 Do you (or your spouse) have another vehicle available for personal use? Yes 47a Do you have evidence to support your deduction?.. Yes b If "Yes," is the evidence written? .. Yes Part V Other Expenses. List below business expenses not included on lines 8-26 or line 30. Continuing education Printing 48 Total other expenses. Enter here and on line 27a . 48 Schedule C (Form 1040) 2021