About Schedule C (Form 1040), Profit or Loss from Business (Sole Proprietorship) | Internal Revenue Service
Summary: The 2025 Schedule C (Form 1040) is the official IRS tax form used by sole proprietors to calculate and report the net profit or loss from their business activities for the 2025 tax year.
Schedule C (Form 1040) is required for individuals who operate a business or practice a profession as a sole proprietor. The form is used to report gross receipts, cost of goods sold, and various business expenses to determine net profit or loss. This information is then carried over to Schedule 1 (Form 1040) and Schedule SE for self-employment tax purposes. The 2025 version includes sections for general business information, income, detailed expense categories, cost of goods sold (Part III), vehicle usage (Part IV), and other miscellaneous expenses (Part V).
Document outline
1. General Information (Name, SSN, Business Details, Accounting Method) 2. Part I: Income (Gross receipts, returns, cost of goods sold, gross profit) 3. Part II: Expenses (Advertising, car/truck, commissions, contract labor, depreciation, insurance, interest, legal, office, pension, rent, repairs, supplies, taxes, travel, meals, utilities, wages, home office) 4. Part III: Cost of Goods Sold (Inventory valuation, labor, materials) 5. Part IV: Information on Your Vehicle (Business vs. personal mileage, evidence support) 6. Part V: Other Expenses (List of miscellaneous business expenses)