Schedule C Updates 2025

This course will cover Schedule C from start to finish and will cover all of the typical scenarios tax pros are likely to encounter.

You will gain an in-depth understanding of:

• Evolving Form 1099-K Requirements: Explore updated thresholds and their significant implications for income reporting on Schedule C, including the latest IRS delays and changes influencing contractor payments.
• Optimizing Vehicle Expenses: Compare standard mileage versus actual expense methods, delve into complex depreciation rules, and understand the tax consequences upon vehicle sale.
• Crucial Schedule C Adjustments: Grasp the latest standard mileage rates, bonus depreciation percentages for 2025, and essential Qualified Business Income (QBI) deduction considerations.
• Distinguishing Hobby vs. Business: Learn the IRS's nine-factor test for profit motive, understanding the critical difference in deductibility of losses.
• Navigating Home Office Deductions: Uncover qualification criteria, explore simplified versus actual expense methods, and address the often-overlooked depreciation recapture upon home sale.
• Mastering 1099 Issuance Compliance: Understand requirements for 1099-NEC and 1099-MISC, and learn vital lessons on documentation and substantiation from recent tax court cases.
• Strategic Employment of Family Members: Discover legitimate tax benefits and crucial considerations for hiring children (payroll tax exemptions) and spouses (fringe benefits like Section 105 plans), emphasizing reasonable compensation.
• Understanding Accounting Method Nuances: Differentiate between cash and accrual methods, grasp constructive receipt, prepaid expenses, the 12-month rule, and handling advances.
• Self-Employed Health Insurance: Review the criteria for deductibility and the necessity of Form 7206.
• Retirement Planning for Sole Proprietors: Analyze contribution rules and deduction implications for SEPs, SIMPLEs, Solo 401(k)s, and traditional/Roth IRAs, ensuring optimal retirement savings strategies.

Equip yourself with the knowledge to navigate the complexities of Schedule C and provide top-tier advice for the 2025 tax season.