Please note that while Schedule C-EZ is still available in Taxwise 2012, Schedule C is the preferred form to use when reporting income and expenses from a Sole Proprietorship. Schedule C makes it easier to accurately report mileage expense, which is often a key expense for our clients. Also, if the Schedule C-EZ is decreed obsolete by the IRS in the future, it is possible that the carry forward of data from an existing business may be lost.
However, we must continue to abide by the limitations of Schedule C-EZ. Expenses cannot exceed $5,000 and only one Schedule C per taxpayer. For a complete list of the constraints, see the Out-of-Scope listing in Appendix H of the 2012-2013 issue of the Training Guide, which is available on the Sharenet in the Training section.