Sometimes work doesn't stop for dinner. (Photo: Flickr/Victor1558)
Q: When does a small business flow to a Schedule E and when to a Schedule C?
A: Schedule E is for situation where you have rental income, receive royalties, or have income reported on a Schedule K-1 from a partnership of S corporation. Here is a fact sheet on Schedule E.
Schedule C is for self-employment activities. This is when you have a business other than rental real estate activity. Here is a fact sheet regarding Schedule C.
-- Answer from Meg C., an accountant on JustAnswer.
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