If your business was operating before the date mentioned in Box E of your form 2553, it may be necessary to report the income and expenses from that period on Schedule C of your personal tax return (Form 1040). This ensures that all business activity is accurately accounted for and properly reported to the IRS.
Additionally, if you join Collective during the year and your S Corp election date is not on January 1st, we have created this spreadsheet to assist you with collecting that data.
This workbook will include all Schedule C income & expenses for the intended year/timeframe. This timeframe will include business income received and expenses paid from the day before your S Corp start date (found in Box E on your 2553 - see below) back to January 1st of the current tax year.
For example: The Schedule C timeframe for the business above would be January 1, 2021 - September 17, 2021
Tabs within the worksheet to complete
Introduction - Please list your business name (if applicable), your name and the timeframe of the included information.
1. Expense & Income Categories - Categories used for completing tab 2 which relate directly to the information on the Schedule C tax form - For informational purposes only.
2. Download from Bank/Credit Card - Transaction downloaded from credit cards/deposit accounts transactions from the intended timeframe. Please select a option from the dropdown. These options relate directly to the categories listed on Tab 1.
3. Purchases > $2,500 - Purchases of $2,500 or more in the intended year. List the vendor, total amount, date of purchase and if the item was paid in full or a loan was taken out to pay for such item - if applicable
4. Home Office Expenses - Dedicated office space - based on Sq Feet - Rent/Mortgage, Utilities, Internet, Cell Phone - entered on a by month basis
5. Qu's about expenses & income or additional information requested our tax team needs to know about
Note: If you have questions regarding if this relates to your business, your timeframe or questions on how to complete the worksheet, please reach out to [email protected]
Disclaimer: The information contained in this document is provided for informational purposes only and should not be construed as financial or tax advice. It is not intended to be a substitute for obtaining accounting or other financial advice from an appropriate financial adviser or for the purpose of avoiding U.S. Federal, state or local tax payments and penalties.