SCHEDULE C

Profit or Loss From Business

OMB No. 1545-0074

(Form 1040)

(Sole Proprietorship)

Partnerships, joint ventures, etc., must file Form 1065 or 1065-B.

00 5

Attachment

Department of the Treasury Internal Revenue Service	(99)

Attach to Form 1040 or 1041.

See Instructions for Schedule C (Form 1040).

Sequence No. 09

C

Business name. If no separate business name, leave blank.

D Employer ID number (EIN), if any

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 2005? If “No,” see page C-3 for limit on losses
H	If you started or acquired this business during 2005, check here

Yes

No

	

Part I

Income

1

 Gross receipts or sales. Caution. If this income was reported to you on Form W-2 and the “Statutory

employee” box on that form was checked, see page C-3 and check here Returns and allowances
Subtract line 2 from line 1

	

2

	

3

4

Cost of goods sold (from line 42 on page 2)

	

5

Gross profit. Subtract line 4 from line 3

	

6

Other income, including Federal and state gasoline or fuel tax credit or refund (see page C-3)

7 Gross income. Add lines 5 and 6

	

Part II

Expenses. Enter expenses for business use of your home only on line 30.

10

8 Advertising

	

9 Car and truck expenses (see

page C-3)

	

Commissions and fees

Contract labor (see page C-4)

Depletion

	

Depreciation and section 179

expense	deduction	(not

included in Part III) (see

page C-4)

	

Employee benefit programs (other than on line 19) Insurance (other than health)

Interest:

a Mortgage (paid to banks, etc.)

b Other

	

Legal and professional

18 Office expense

19 Pension and profit-sharing plans

20 Rent or lease (see page C-5):

a Vehicles, machinery, and equipment
b Other business property
21 Repairs and maintenance
22 Supplies (not included in Part III) 23 Taxes and licenses

24 Travel, meals, and entertainment:

a Travel

	

b Deductible meals and

entertainment (see page C-5)

25 Utilities

	

26 Wages (less employment credits)

27 Other expenses (from line 48 on

page 2)

	

11

12

13

14

15

16

17

services

	

28

Total expenses before expenses for business use of home. Add lines 8 through 27 in columns

29

Tentative profit (loss). Subtract line 28 from line 7

	

30

Expenses for business use of your home. Attach Form 8829

	

31

Net profit or (loss). Subtract line 30 from line 29.

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•	If a profit, enter on Form 1040, line 12, and also on Schedule SE, line 2 (statutory employees, see page C-6). Estates and trusts, enter on Form 1041, line 3.

•	If a loss, you must go to line 32.

32

If you have a loss, check the box that describes your investment in this activity (see page C-6).
•	If you checked 32a, enter the loss on Form 1040, line 12, and also on Schedule SE, line 2 (statutory employees, see page C-6). Estates and trusts, enter on Form 1041, line 3.

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32a

All investment is at risk.

32b

Some 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 page C-7 of the instructions.

Cat. No. 1 1334P

Schedule C (Form 1040) 2005

Name of proprietor

Social security number (SSN)

Principal business or profession, including product or service (see page C-2 of the instructions)

A

	B Enter code from pages C-8, 9, & 10	

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2			
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8			
9			
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11			
12			
13			
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15			
16a			
16b			
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18			
19			
20a			
20b			
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24a			
24b			
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26			
27			
			
28			
29			
30			
31			

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Schedule C (Form 1040) 2005

Page 2

Part III

Cost of Goods Sold (see page C-6)

33

Method(s) used to

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

	

Yes

No

35

Inventory at beginning of year. If different from last year’s closing inventory, attach explanation
Purchases less cost of items withdrawn for personal use
Cost of labor. Do not include any amounts paid to yourself
Materials and supplies
Other costs

35

36

	

37

	

38

	

39

	

40

Add lines 35 through 39

	

41

Inventory at end of year

	

42 Cost of goods sold. Subtract line 41 from line 40. Enter the result here and on page 1, line 4

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 on page C-4 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 2005, enter the number of miles you used your vehicle for:

a Business

b Commuting (see instructions)

c Other

45

Do you (or your spouse) have another vehicle available for personal use?

	

Yes

No

46

Was your vehicle available for personal use during off-duty hours?

	

Yes

No

47a Do you have evidence to support your deduction?

	

Yes

No

b If “Yes,” is the evidence written?

	

Yes

No

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 page 1, line 27

	

48

Printed on recycled paper

Schedule C (Form 1040) 2005

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