Maria runs a small business out of her home. She has expenses of $2,000 per year and uses the cash basis method of accounting. Her only employee is her cousin who works for her part-time. What form should she use to report her business income?

Question

Quizplus · Accepted Answer

Schedule C is the form used to report business income and expenses for sole proprietors who use the cash basis method of accounting. As Maria runs a small business out of her home and uses cash basis accounting, Schedule C is the best choice for reporting her business income.

Maria Runs a Small Business Out of Her Home