Instructions for Schedule C (Form 1040)
taxmap/instr/i1040sc-012.htm#TXMP436a868cInclude all ordinary and necessary business expenses not deducted elsewhere on Schedule C. List the type and amount of each expense separately in the space provided. Enter the total on lines 48 and 27a. Do not include the cost of business equipment or furniture, replacements or permanent improvements to property, or personal, living, and family expenses. Do not include charitable contributions. Also, you cannot deduct fines or penalties paid to a government for violating any law. For details on business expenses, see Pub.
535.
Include amortization in this part. For amortization that begins in 2011, you
must complete and attach Form 4562.
You can elect to amortize such costs as:
- The cost of pollution-control facilities;
- Amounts paid for research and experimentation;
- Qualified revitalization expenditures;
- Amounts paid to acquire, protect, expand, register, or defend trademarks or trade names;
or
- Goodwill and certain other intangibles.
In most cases, you cannot amortize real property construction period interest and taxes. Special rules apply for allocating interest to real or personal property produced in your trade or
business.
For a complete list, see the Instructions for Form 4562, Part
VI.
taxmap/instr/i1040sc-012.htm#TXMP24d06d2cAny loss from this business that was not allowed as a deduction last year only because of the at-risk rules is treated as a deduction allocable to this business in 2011. For the loss to be deductible, the amount that is
at risk
must be increased.
taxmap/instr/i1040sc-012.htm#TXMP599eaa68Include debts and partial debts from sales or services that were included in income and are definitely known to be worthless. If you later collect a debt that you deducted as a bad debt, include it as income in the year collected. For details, see Pub.
535.
If your business began in 2011, you can elect to deduct up to $5,000 of certain business start-up costs. The $5,000 limit is reduced (but not below zero) by the amount by which your total start-up costs exceed $50,000. Your remaining start-up costs can be amortized over a 180-month period, beginning with the month the business
began.
For details, see chapters 7 and 8 of Pub.
535. For amortization that begins in 2011, you must complete and attach Form
4562.
You may be able to deduct part or all of the cost of modifying existing commercial buildings to make them energy efficient. For details, see section 179D, Notice 2006-52, and Notice 2008-40. Notice 2006-52, 2006-26 I.R.B. 1175, is available
at
www.irs.gov/irb/2006-26_IRB/ar11.html. Notice 2008-40, 2008-14 I.R.B. 725, is available at
www.irs.gov/irb/2008-14_IRB/ar12.html.
You may be able to deduct up to $15,000 of costs paid or incurred in 2011 to remove architectural or transportation barriers to individuals with disabilities and the elderly. However, you cannot take both a credit (on Form 8826) and a deduction for the same
expenditures.
taxmap/instr/i1040sc-012.htm#TXMP635097abYou can elect to deduct certain expenses you paid or incurred before January 1, 2012, as a result of a federally declared disaster. For more information, see chapter 7 of Pub.
535.
You can elect to deduct costs of certain qualified film and television productions. For details, see Pub.
535.
Reforestation costs are generally capital expenditures. However, for each
qualified timber property, you can elect to expense up to $10,000 ($5,000 if
married filing separately) of qualifying reforestation costs paid or incurred in
2011.
You can elect to amortize the remaining costs over 84 months. For amortization that begins in 2011, you must complete and attach Form
4562.
The amortization election does not apply to trusts, and the expense election does not apply to estates and trusts. For details on reforestation expenses, see chapters 7 and 8 of Pub.
535.
These codes for the Principal Business or Professional Activity classify sole proprietorships by the type of activity they are engaged in to facilitate the administration of the Internal Revenue Code. These six-digit codes are based on the North American Industry Classification System
(NAICS).
Select the category that best describes your primary business activity (for example, Real Estate). Then select the activity that best identifies the principal source of your sales or receipts (for example, real estate agent). Now find the six-digit code assigned to this activity (for example, 531210, the code for offices of real estate agents and brokers) and enter it on Schedule C or C-EZ, line
B.
Note.
If your principal source of income is from farming activities, you should file Schedule
F.
Accommodation, Food Services, & Drinking Places(p9)
Accommodation(p9)
| 721310 | Rooming & boarding houses |
| 721210 | RV (recreational vehicle) parks & recreational camps |
| 721100 | Traveler accommodation (including hotels, motels, & bed & breakfast inns)
|
Food Services & Drinking Places(p9)
| 722410 | Drinking places (alcoholic beverages) |
| 722110 | Full-service restaurants |
| 722210 | Limited-service eating places |
| 722300 | Special food services (including food service contractors &
caterers) |
Administrative & Support and Waste Management & Remediation
Services(p9)
Administrative & Support Services(p9)
| 561430 | Business service centers (including private mail centers & copy
shops) |
| 561740 | Carpet & upholstery cleaning services |
| 561440 | Collection agencies
|
| 561410 | Document preparation services
|
| 561300 | Employment services
|
| 561710 | Exterminating & pest control services
|
| 561210 | Facilities support (management) services
|
| 561600 | Investigation & security services
|
| 561720 | Janitorial services
|
| 561730 | Landscaping services
|
| 561110 | Office administrative services
|
| 561420 | Telephone call centers (including telephone answering services & telemarketing
bureaus) |
| 561500 | Travel arrangement & reservation services |
| 561490 | Other business support services (including repossession services, court reporting, & stenotype
services) |
| 561790 | Other services to buildings & dwellings
|
| 561900 | Other support services (including packaging & labeling services, & convention & trade show
organizers) |
Waste Management & Remediation Services(p9)
| 562000 | Waste management & remediation services
|
Agriculture, Forestry, Hunting, & Fishing(p9)
| 112900 | Animal production (including breeding of cats and dogs) |
| 113000 | Forestry & logging (including forest nurseries & timber
tracts) |
| 114210 | Hunting & trapping |
Support Activities for Agriculture & Forestry(p9)
| 115210 | Support activities for animal production (including farriers) |
| 115110 | Support activities for crop production (including cotton ginning, soil preparation, planting, &
cultivating) |
| 115310 | Support activities for forestry |
Arts, Entertainment, & Recreation(p9)
Amusement, Gambling, & Recreation Industries(p9)
| 713100 | Amusement parks & arcades |
| 713200 | Gambling industries
|
| 713900 | Other amusement & recreation services (including golf courses, skiing facilities, marinas, fitness centers, bowling centers, skating rinks, miniature golf
courses) |
Museums, Historical Sites, & Similar Institutions(p9)
| 712100 | Museums, historical sites, & similar institutions |
Performing Arts, Spectator Sports, & Related Industries(p9)
| 711410 | Agents & managers for artists, athletes, entertainers, & other public
figures |
| 711510 | Independent artists, writers, & performers |
| 711100 | Performing arts companies |
| 711300 | Promoters of performing arts, sports, & similar events |
| 711210 | Spectator sports (including professional sports clubs & racetrack
operations) |
Construction of Buildings(p9)
| 236200 | Nonresidential building construction |
| 236100 | Residential building construction |
Heavy and Civil Engineering Construction(p9)
| 237310 | Highway, street, & bridge construction |
| 237100 | Utility system construction |
| 237990 | Other heavy & civil engineering construction |
Specialty Trade Contractors(p9)
| 238310 | Drywall & insulation contractors |
| 238210 | Electrical contractors |
| 238350 | Finish carpentry contractors |
| 238330 | Flooring contractors |
| 238130 | Framing carpentry contractors |
| 238150 | Glass & glazing contractors |
| 238140 | Masonry contractors |
| 238320 | Painting & wall covering contractors |
| 238220 | Plumbing, heating & air- conditioning contractors |
| 238110 | Poured concrete foundation & structure contractors |
| 238160 | Roofing contractors |
| 238170 | Siding contractors |
| 238910 | Site preparation contractors |
| 238120 | Structural steel & precast concrete construction contractors |
| 238340 | Tile & terrazzo contractors |
| 238290 | Other building equipment contractors |
| 238390 | Other building finishing contractors |
| 238190 | Other foundation, structure, & building exterior contractors |
| 238990 | All other specialty trade contractors |
Educational Services(p9)
| 611000 | Educational services (including schools, colleges, & universities) |
Finance & Insurance(p9)
Credit Intermediation & Related Activities(p9)
| 522100 | Depository credit intermediation (including commercial banking, savings institutions, & credit
unions) |
| 522200 | Nondepository credit intermediation (including sales financing & consumer
lending) |
| 522300 | Activities related to credit intermediation (including loan
brokers) |
Insurance Agents, Brokers, & Related Activities(p9)
| 524210 | Insurance agencies & brokerages |
| 524290 | Other insurance related activities |
Securities, Commodity Contracts, & Other Financial Investments & Related
Activities(p9)
| 523140 | Commodity contracts brokers |
| 523130 | Commodity contracts dealers |
| 523110 | Investment bankers & securities dealers |
| 523210 | Securities & commodity exchanges |
| 523120 | Securities brokers |
| 523900 | Other financial investment activities (including investment
advice) |
Health Care & Social Assistance(p9)
Ambulatory Health Care Services(p9)
| 621610 | Home health care services |
| 621510 | Medical & diagnostic laboratories |
| 621310 | Offices of chiropractors |
| 621210 | Offices of dentists |
| 621330 | Offices of mental health practitioners (except physicians) |
| 621320 | Offices of optometrists |
| 621340 | Offices of physical, occupational & speech therapists, &
audiologists |
| 621111 | Offices of physicians (except mental health specialists) |
| 621112 | Offices of physicians, mental health specialists |
| 621391 | Offices of podiatrists |
| 621399 | Offices of all other miscellaneous health practitioners |
| 621400 | Outpatient care centers |
| 621900 | Other ambulatory health care services (including ambulance services, blood, & organ
banks) |
Hospitals(p9)
Nursing & Residential Care Facilities(p9)
| 623000 | Nursing & residential care facilities |
Social Assistance(p9)
| 624410 | Child day care services |
| 624200 | Community food & housing, & emergency & other relief
services |
| 624100 | Individual & family services |
| 624310 | Vocational rehabilitation services |
Information(p9)
| 511000 | Publishing industries (except Internet) |
Broadcasting (except Internet) & Telecommunications(p9)
| 515000 | Broadcasting (except Internet) |
| 517000 | Telecommunications & Internet service providers |
Data Processing Services(p9)
| 518210 | Data processing, hosting, & related services |
| 519100 | Other information services (including news syndicates & libraries, Internet publishing &
broadcasting) |
Motion Picture & Sound Recording(p9)
| 512100 | Motion picture & video industries (except video rental) |
| 512200 | Sound recording industries |
Manufacturing(p9)
| 312000 | Beverage & tobacco product mfg. |
| 334000 | Computer & electronic product mfg. |
| 335000 | Electrical equipment, appliance, & component mfg. |
| 332000 | Fabricated metal product mfg. |
| 337000 | Furniture & related product mfg. |
| 339110 | Medical equipment & supplies mfg. |
| 324100 | Petroleum & coal products mfg. |
| 326000 | Plastics & rubber products mfg. |
| 331000 | Primary metal mfg. |
| 323100 | Printing & related support activities |
| 314000 | Textile product mills |
| 336000 | Transportation equipment mfg. |
| 339900 | Other miscellaneous mfg. |
Chemical Manufacturing(p9)
| 325100 | Basic chemical mfg. |
| 325500 | Paint, coating, & adhesive mfg. |
| 325300 | Pesticide, fertilizer, & other agricultural chemical mfg. |
| 325410 | Pharmaceutical & medicine mfg. |
| 325200 | Resin, synthetic rubber, & artificial & synthetic fibers & filaments
mfg. |
| 325600 | Soap, cleaning compound, & toilet preparation mfg. |
| 325900 | Other chemical product & preparation mfg. |
Food Manufacturing(p9)
| 311800 | Bakeries & tortilla mfg. |
| 311500 | Dairy product mfg. |
| 311400 | Fruit & vegetable preserving & speciality food mfg. |
| 311200 | Grain & oilseed milling |
| 311610 | Animal slaughtering & processing |
| 311710 | Seafood product preparation & packaging |
| 311300 | Sugar & confectionery product mfg. |
| 311900 | Other food mfg. (including coffee, tea, flavorings, &
seasonings) |
Leather & Allied Product Manufacturing(p9)
| 316210 | Footwear mfg. (including leather, rubber, & plastics)
|
| 316110 | Leather & hide tanning & finishing
|
| 316990 | Other leather & allied product mfg. |
Nonmetallic Mineral Product Manufacturing(p9)
| 327300 | Cement & concrete product mfg. |
| 327100 | Clay product & refractory mfg. |
| 327210 | Glass & glass product mfg. |
| 327400 | Lime & gypsum product mfg. |
| 327900 | Other nonmetallic mineral product mfg. |
| 212300 | Nonmetallic mineral mining & quarrying
|
| 211110 | Oil & gas extraction
|
| 213110 | Support activities for mining |
Other Services(p9)
Personal & Laundry Services(p9)
| 812220 | Cemeteries & crematories
|
| 812310 | Coin-operated laundries & drycleaners
|
| 812320 | Drycleaning & laundry services (except coin-operated) (including laundry & drycleaning dropoff & pickup
sites) |
| 812210 | Funeral homes & funeral services
|
| 812330 | Linen & uniform supply |
| 812930 | Parking lots & garages |
| 812910 | Pet care (except veterinary) services
|
| 812190 | Other personal care services (including diet & weight reducing
centers) |
| 812990 | All other personal services |
Repair & Maintenance(p9)
| 811120 | Automotive body, paint, interior, & glass repair |
| 811110 | Automotive mechanical & electrical repair & maintenance
|
| 811190 | Other automotive repair & maintenance (including oil change & lubrication shops & car
washes) |
| 811310 | Commercial & industrial machinery & equipment (except automotive & electronic) repair & maintenance
|
| 811210 | Electronic & precision equipment repair & maintenance
|
| 811430 | Footwear & leather goods repair |
| 811410 | Home & garden equipment & appliance repair & maintenance |
| 811420 | Reupholstery & furniture repair |
| 811490 | Other personal & household goods repair & maintenance |
Professional, Scientific, & Technical Services(p9)
| 541211 | Offices of certified public accountants |
| 541213 | Tax preparation services |
| 541219 | Other accounting services |
Architectural, Engineering, & Related Services(p9)
| 541310 | Architectural services |
| 541350 | Building inspection services |
| 541330 | Engineering services |
| 541360 | Geophysical surveying & mapping services |
| 541320 | Landscape architecture services |
| 541370 | Surveying & mapping (except geophysical) services |
| 541380 | Testing laboratories |
Computer Systems Design & Related Services(p9)
| 541510 | Computer systems design & related services |
Specialized Design Services(p9)
| 541400 | Specialized design services (including interior, industrial, graphic, & fashion
design) |
Other Professional, Scientific, & Technical Services(p9)
| 541800 | Advertising & related services |
| 541600 | Management, scientific, & technical consulting services |
| 541910 | Market research & public opinion polling |
| 541920 | Photographic services |
| 541700 | Scientific research & development services |
| 541930 | Translation & interpretation services |
| 541940 | Veterinary services |
| 541990 | All other professional, scientific, & technical services |
Real Estate & Rental & Leasing(p9)
Real Estate(p9)
| 531100 | Lessors of real estate (including miniwarehouses & self-storage
units) |
| 531210 | Offices of real estate agents & brokers |
| 531320 | Offices of real estate appraisers |
| 531310 | Real estate property managers |
| 531390 | Other activities related to real estate |
Rental & Leasing Services(p9)
| 532100 | Automotive equipment rental & leasing |
| 532400 | Commercial & industrial machinery & equipment rental &
leasing |
| 532210 | Consumer electronics & appliances rental |
| 532220 | Formal wear & costume rental |
| 532310 | General rental centers |
| 532230 | Video tape & disc rental |
| 532290 | Other consumer goods rental |
Religious, Grantmaking, Civic, Professional, & Similar Organizations(p9)
| 813000 | Religious, grantmaking, civic, professional, & similar
organizations |
Retail Trade(p9)
Building Material & Garden Equipment & Supplies Dealers(p9)
| 444200 | Lawn & garden equipment & supplies stores |
| 444120 | Paint & wallpaper stores |
| 444190 | Other building materials dealers |
Clothing & Accessories Stores(p9)
| 448130 | Children's & infants' clothing stores |
| 448150 | Clothing accessories stores |
| 448140 | Family clothing stores |
| 448320 | Luggage & leather goods stores |
| 448110 | Men's clothing stores |
| 448120 | Women's clothing stores |
| 448190 | Other clothing stores |
Electronic & Appliance Stores(p9)
| 443130 | Camera & photographic supplies stores |
| 443120 | Computer & software stores |
| 443111 | Household appliance stores |
| 443112 | Radio, television, & other electronics stores |
Food & Beverage Stores(p9)
| 445310 | Beer, wine, & liquor stores |
| 445220 | Fish & seafood markets |
| 445230 | Fruit & vegetable markets |
| 445100 | Grocery stores (including supermarkets & convenience stores without
gas) |
| 445290 | Other specialty food stores |
Furniture & Home Furnishing Stores(p9)
| 442200 | Home furnishings stores |
Gasoline Stations(p9)
| 447100 | Gasoline stations (including convenience stores with gas) |
General Merchandise Stores(p9)
| 452000 | General merchandise stores |
Health & Personal Care Stores(p9)
| 446120 | Cosmetics, beauty supplies, & perfume stores |
| 446130 | Optical goods stores |
| 446110 | Pharmacies & drug stores |
| 446190 | Other health & personal care stores |
Motor Vehicle & Parts Dealers(p9)
| 441300 | Automotive parts, accessories, & tire stores |
| 441221 | Motorcycle dealers |
| 441210 | Recreational vehicle dealers (including motor home & travel trailer
dealers) |
| 441229 | All other motor vehicle dealers |
Sporting Goods, Hobby, Book, & Music Stores(p9)
| 451120 | Hobby, toy, & game stores |
| 451140 | Musical instrument & supplies stores |
| 451212 | News dealers & newsstands
|
| 451220 | Prerecorded tape, compact disc, & record stores |
| 451130 | Sewing, needlework, & piece goods stores |
| 451110 | Sporting goods stores |
Miscellaneous Store Retailers(p9)
| 453220 | Gift, novelty, & souvenir stores |
| 453930 | Manufactured (mobile) home dealers |
| 453210 | Office supplies & stationery stores |
| 453910 | Pet & pet supplies stores |
| 453310 | Used merchandise stores |
| 453990 | All other miscellaneous store retailers (including tobacco, candle, & trophy
shops) |
Nonstore Retailers(p9)
| 454112 | Electronic auctions
|
| 454111 | Electronic shopping
|
| 454210 | Vending machine operators
|
| 454390 | Other direct selling establishments (including door-to-door retailing, frozen food plan providers, party plan merchandisers, & coffee-break service
providers) |
Transportation & Warehousing(p9)
| 481000 | Air transportation
|
| 485510 | Charter bus industry
|
| 484110 | General freight trucking, local |
| 484120 | General freight trucking, long distance
|
| 485210 | Interurban & rural bus transportation
|
| 486000 | Pipeline transportation
|
| 482110 | Rail transportation
|
| 487000 | Scenic & sightseeing transportation
|
| 485410 | School & employee bus transportation
|
| 484200 | Specialized freight trucking (including household moving vans) |
| 485300 | Taxi & limousine service |
| 485110 | Urban transit systems |
| 483000 | Water transportation
|
| 485990 | Other transit & ground passenger transportation
|
| 488000 | Support activities for transportation (including motor vehicle
towing) |
Couriers & Messengers(p9)
| 492000 | Couriers & messengers |
Warehousing & Storage Facilities(p9)
| 493100 | Warehousing & storage (except leases of miniwarehouses & self-storage
units) |
Utilities(p9)
Wholesale Trade(p9)
Merchant Wholesalers, Durable Goods(p9)
| 423600 | Electrical & electronic goods |
| 423200 | Furniture & home furnishing |
| 423700 | Hardware, & plumbing & heating equipment & supplies |
| 423940 | Jewelry, watch, precious stone, & precious metals |
| 423300 | Lumber & other construction materials |
| 423800 | Machinery, equipment, & supplies |
| 423500 | Metal & mineral (except petroleum) |
| 423100 | Motor vehicle & motor vehicle parts & supplies |
| 423400 | Professional & commercial equipment & supplies |
| 423930 | Recyclable materials |
| 423910 | Sporting & recreational goods & supplies |
| 423920 | Toy & hobby goods & supplies |
| 423990 | Other miscellaneous durable goods |
Merchant Wholesalers, Nondurable Goods(p9)
| 424300 | Apparel, piece goods, & notions |
| 424800 | Beer, wine, & distilled alcoholic beverage |
| 424920 | Books, periodicals, & newspapers |
| 424600 | Chemical & allied products |
| 424210 | Drugs & druggists' sundries |
| 424500 | Farm product raw materials |
| 424930 | Flower, nursery stock, & florists' supplies |
| 424400 | Grocery & related products |
| 424950 | Paint, varnish, & supplies |
| 424100 | Paper & paper products |
| 424700 | Petroleum & petroleum products |
| 424940 | Tobacco & tobacco products |
| 424990 | Other miscellaneous nondurable goods |
Wholesale Electronic Markets and Agents & Brokers(p9)
| 425110 | Business to business electronic markets |
| 425120 | Wholesale trade agents & brokers |
| 999999 | Unclassified establishments (unable to classify) |
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