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| Previous Page: 334-Business Expenses-Expenses You Cannot Deduct Next Page: 334-Net Operating Losses (NOLs) Use   to find additional instances of index items. |
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| Net profit or loss | Figuring Net Profit |
Introduction | |
| After figuring your business income and expenses, you are ready to figure the net profit or net loss from your business. You do this by subtracting business expenses from business income. If your expenses are less than your income, the difference is net profit and becomes part of your income on page 1 of Form 1040. If your expenses are more than your income, the difference is a net loss. You usually can deduct it from gross income on page 1 of Form 1040. But in some situations your loss is limited. This chapter briefly explains two of those situations. Other situations that may limit your loss are explained in the instructions for line G and line 32 of Schedule C. | |
| Caution: | |
| If you have more than one business, you must figure your net profit or loss for each business on a separate Schedule C. | |
Previous Page: 334-Business Expenses-Expenses You Cannot Deduct Next Page: 334-Net Operating Losses (NOLs) Use to find additional instances of index items. |
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