Tracy Morgan is self-employed as a professional golf instructor. She uses the cash method of accounting and her SS# is 465-34-3389. Her principal business code is 812990. Tracy's business is located at 41500 Gardenbrook Rd, in Novi, MI 48375.

During 2021, Tracy had the following income and expenses:

Fees from golf lessons	$40,125
Expenses:
Car Mileage (5,234 business miles)	3,036
Business Liability Insurance	475
Office Expense	660
Rent on storage space	2,700
City business license	250
Travel expense	3,000
Meals (deductible portion)	985
Utilities	1,015
Miscellaneous Expense	500
Refund given to student	200
Advertising	800

Tracy is a good friend of yours who knows you have just learned about all sorts of interesting tax stuff.

She would like your help with the following:

Tracy would like you to fill out Schedule C for her business using the facts described above. Describe any questions Fill out the Schedule C

SCHEDULEC Profit or Loss From Business OMB No. 1545-0074 (Form 1040) (Sole Proprietorship) 2021 Department of the Treasury Go to www.irs.gov/Schedule for instructions and the latest information. Attachment Internal Revenue Service (99) Attach to Form 1040, 1040-SR, 1040-NR, or 1041; partnerships must generally file Form 1065. Sequence No. 09 Name of proprietor Social security number (SSN) () A Principal business or profession, including product or service (see instructions) B Enter code from instructions Business name. If no separate business name, leave blank. D Employer ID number (EIN) (see instr.) Yes 2 3 6 7 8 o 8 18 9 20 10 10 11 11 12 23 E Business address (including suite or room no.) City, town or post office, state, and ZIP code 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 Yes No H If you started or acquired this business during 2021, check here. Did you make any payments in 2021 that would require you to file Form(s) 1099? See instructions No If "Yes," did you or will you file required Form(s) 1099? . Yes No Part Income 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 2 Returns and allowances. 3 Subtract line 2 from line 1 1 3 4 Cost of goods sold (from line 42) 4 5 Gross profit. Subtract line 4 from line 3 5 Other income, including federal and state gasoline or fuel tax credit or refund (see instructions) 6 . 7 Gross income. Add lines 5 and 6 Part II Expenses. Enter expenses for business use of your home only on line 30. 8 Advertising Office expense (see instructions) 18 9 Car and truck expenses (see 19 Pension and profit-sharing plans 19 instructions) Rent or lease (see instructions): Commissions and fees. a Vehicles, machinery, and equipment 20a Contract labor (see instructions) b Other business property 20b 12 Depletion 21 Repairs and maintenance 21 13 Depreciation and section 179 22 Supplies (not included in Part III) 22 expense deduction (not ( included in Part III) (see 23 Taxes and licenses instructions) 24 Travel and meals: Employee benefit programs a Travel 24a Travel.. (other than on line 19) 14 b Deductible meals (see 15 Insurance (other than health) 15 instructions) 24b 16 Interest (see instructions): 25 Utilities 25 a Mortgage (paid to banks, etc.) 16a 26 Wages (less employment credits) 26 h Other b Other 16b 27a Other expenses (from line 48) 27a 17 Legal and professional services 17 b Reserved for future use 27b 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 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: only 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. 31 If a loss, you must go to line 32. 32 If f 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 32a All investment is at risk. Form 1041, line 3. 32bSome investment is not If you checked 32b, you must attach Form 6198. Your loss may be limited. at risk. For Paperwork Reduction Act Notice, see the separate instructions. Cat. No. 11334P Schedule C (Form 1040) 2021 C 13 14 30 . Page 2 Schedule C (Form 1040) 2021 Part II Cost of Goods Sold (see instructions) ( 33 Method(s) used to s) value closing inventory: a 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.. 7 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 Inventory at end of year 41 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) 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) b c Other 45 Was your vehicle available for personal use during off-duty hours? Yes No 46 Do you (or your spouse) have another vehicle available for personal use? Yes No 47a Do you have evidence to support your deduction? Yes No Yes N No b If "Yes," is the evidence written? Part V Other Expenses. List below business expenses not included on lines 8-26 or line 30. 48 Total other expenses. Enter here and on line 27a 48 Schedule C (Form 1040) 2021 SCHEDULEC Profit or Loss From Business OMB No. 1545-0074 (Form 1040) (Sole Proprietorship) 2021 Department of the Treasury Go to www.irs.gov/Schedule for instructions and the latest information. Attachment Internal Revenue Service (99) Attach to Form 1040, 1040-SR, 1040-NR, or 1041; partnerships must generally file Form 1065. Sequence No. 09 Name of proprietor Social security number (SSN) () A Principal business or profession, including product or service (see instructions) B Enter code from instructions Business name. If no separate business name, leave blank. D Employer ID number (EIN) (see instr.) Yes 2 3 6 7 8 o 8 18 9 20 10 10 11 11 12 23 E Business address (including suite or room no.) City, town or post office, state, and ZIP code 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 Yes No H If you started or acquired this business during 2021, check here. Did you make any payments in 2021 that would require you to file Form(s) 1099? See instructions No If "Yes," did you or will you file required Form(s) 1099? . Yes No Part Income 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 2 Returns and allowances. 3 Subtract line 2 from line 1 1 3 4 Cost of goods sold (from line 42) 4 5 Gross profit. Subtract line 4 from line 3 5 Other income, including federal and state gasoline or fuel tax credit or refund (see instructions) 6 . 7 Gross income. Add lines 5 and 6 Part II Expenses. Enter expenses for business use of your home only on line 30. 8 Advertising Office expense (see instructions) 18 9 Car and truck expenses (see 19 Pension and profit-sharing plans 19 instructions) Rent or lease (see instructions): Commissions and fees. a Vehicles, machinery, and equipment 20a Contract labor (see instructions) b Other business property 20b 12 Depletion 21 Repairs and maintenance 21 13 Depreciation and section 179 22 Supplies (not included in Part III) 22 expense deduction (not ( included in Part III) (see 23 Taxes and licenses instructions) 24 Travel and meals: Employee benefit programs a Travel 24a Travel.. (other than on line 19) 14 b Deductible meals (see 15 Insurance (other than health) 15 instructions) 24b 16 Interest (see instructions): 25 Utilities 25 a Mortgage (paid to banks, etc.) 16a 26 Wages (less employment credits) 26 h Other b Other 16b 27a Other expenses (from line 48) 27a 17 Legal and professional services 17 b Reserved for future use 27b 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 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: only 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. 31 If a loss, you must go to line 32. 32 If f 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 32a All investment is at risk. Form 1041, line 3. 32bSome investment is not If you checked 32b, you must attach Form 6198. Your loss may be limited. at risk. For Paperwork Reduction Act Notice, see the separate instructions. Cat. No. 11334P Schedule C (Form 1040) 2021 C 13 14 30 . Page 2 Schedule C (Form 1040) 2021 Part II Cost of Goods Sold (see instructions) ( 33 Method(s) used to s) value closing inventory: a 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.. 7 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 Inventory at end of year 41 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) 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) b c Other 45 Was your vehicle available for personal use during off-duty hours? Yes No 46 Do you (or your spouse) have another vehicle available for personal use? Yes No 47a Do you have evidence to support your deduction? Yes No Yes N No b If "Yes," is the evidence written? Part V Other Expenses. List below business expenses not included on lines 8-26 or line 30. 48 Total other expenses. Enter here and on line 27a 48 Schedule C (Form 1040) 2021