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Enrolled Agent Exam [Part 2] 01, Sole Proprietorship Basics and Schedule C
About this episode
This episode covers the basics of sole proprietorships and the use of Schedule C for tax reporting.
This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - What defines a business as a sole proprietorship for federal tax purposes. - The primary function of Schedule C in reporting business profit or loss. - How a sole proprietorship's income and expenses flow through to the owner's Form 1040. - Key differences between deductible business expenses and non-deductible personal costs or owner's draws. - The critical distinction between a for-profit business and a hobby, and the tax implications of this classification. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep
More episodes of Finance Exam Prep
- Enrolled Agent Exam [Part 2] 07, Partnership Allocations — §704(b) Substantial Economic Effect
- Enrolled Agent Exam [Part 2] 05, Partnership Formation — §721 Nonrecognition
- Enrolled Agent Exam [Part 2] 04, Hobby vs Business — Activity for Profit Test
- Enrolled Agent Exam [Part 2] 03, Schedule C — Common Deductible Expenses
- Enrolled Agent Exam [Part 2] 02, Self-Employment Tax and Schedule SE
- Enrolled Agent Exam [Part 1] 100, Exam Day Strategies and Final Review
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