Video instructions and help with filling out and completing Form 1065 Schedule M 3 Schedules

Instructions and Help about Form 1065 Schedule M 3 Schedules

Welcome in this video gone through this kitchen scene and this is to help people who suffer employer to have small business income for their return the first part of the schedule sees is the taxpayers name and social security number line a is the principal business or profession including products or service if any and right across from an order to write as B is the cold we have codes which is six digits that we use identify certain industries in this country that we live in and so the six digit code will correlate to the type of Benesch you're doing or something similar to that if it's another exact match a line C is business name if you don't have a business name then you leave it blank line is the address if it's different than where you actually live that say if you working from home then it'll be the same as your home address but if you have a commercial location then it'll be the commercial location address line F county method a lot of people use cash based method cuz you have a lot of cash based businesses myself I use a kuro method called sir it's a different advantage to use a curl method basic based other than cat based on other than a cash based method so I like to experiment it better because the difference between a catch basin a cure method is cash based business is strictly only can count cash as discs as they receive it in the hand a trio based method is I can count income that I I made based on providing service even though I haven't received the money yet and so that's the difference when cash based vs. Acura method is that I can Ralph expenses even though I haven't actually paid them yet cash based method you can only write off what you actually spend money on when it comes to expenses you have concern your business and so those who could build out a distinct difference between cash base versus Acura method then line G did you maternity participate and operation of the business that's important question so for people self-employed small business owners they check yes cause they must Mattila participate in the business they end to be able to get to four deductions and expenses that come with operating a business line H if you started to acquire this business doing 2018 check HERE that basis for people who simply got started who knew for 2018 that's what that's all about line I did you make any payments and 2018 that will be inquired if you file Form tonight nine and that's would be that's for businesses who paid out to independent contractors for work they might have done concerning different tasks that men have many men needed inside their business safe instance you had a plumber come out a carpenter come out or electrician come out those are business to business type transaction so you would give them a $2.99 doing the end of the year for the money that you pay them for the money you pay them for the service they provided to you because that's income to them and then we go up to par one income well I won intros for seats so say for instance you're a barber and you've generated $29,000 for the year that's gross receipts for going line one line two returns and allowance returns and allowance only apply to people who makes you really deal with physical products so for people who would retail they would have some I they have a dollar amount on that line for the most part and then you subtract one from two and three will be your results for the cost of yield so there's four people like I said in retail health inventory so back of the form you would go to and this is departure we deal with here cost of goods sold for people that read who has inventory that they want to acknowledge they will go here and calculate how that works and take the and make bring the difference I bring that back to line four then five will be profits subtract four from three of you know that gross profits then sixes other can income and seven will be the total income altogether so when this here we go to part two expenses so based on what type of industry and you look at these you look at part two quality expenses and if you don't have anything that actually line up with expenses you have then you go here to this section other expenses and you put down the exact expenses that you incurred in that year and put the total for the year right here and that total amount will go right here on line 27 once you finish and so that's how that works over flights hands for barbers and nail techs and beauticians they don't have any expenses that exactly match here so we haven't put them in the other expense column so they can be Pacific on what expenses they incurred and Saturday business also like I said advertisement so business cards Flyers those considered advertisement radio spots TV spots a podcast that you use it for business that you pay for we consider avatar so cars and trucks so if you have a car or truck you use for your business exclusively you can use that also like I say based on what type of industry you in somebody is lying kind of like some of these expenses on apply to you so you can just basically just go through them and see what apply to you and keep it moving so like I say if you ran out on office space say if you accountant so you have office space then you have office expenses you can put on line