 Income tax 2023-2024. Business income or loss and other gains or losses. Get ready and some coffee so we can avoid the government forcing us to move into a shack with income tax preparation 2023-2024. Most of this information can be found in the Instructions for Schedule 1 section of the Form 1040 Instructions Tax Year 2023, which you can find on the IRS website at irs.gov, irs.gov. Looking at the income tax formula, we're focused online on one income. Remember in the first half of the income tax formula is basically a funny income statement where normally you have income minus expenses resulting in net income. Here we have income minus various deductions results in taxable income. In the income line, we want it as low as possible for taxes, therefore looking for things that we can exclude from income, also noting that some types of income might have more favorable tax rates other than ordinary income tax rates, such as, for example, qualified dividends, long-term capital gains, possibly. First page of the Form 1040 here, we're looking at line number 8, which has additional income from Schedule 1. Here's the Schedule 1 that feeds into that line 8, additional income and adjustments to income. We're looking now at line 3 of Part 1, business income or loss. This will typically flow in from another schedule, which will be a Schedule C. The Schedule C usually being, in essence, an income statement for the business. Okay, so we're looking reporting business income for sole proprietorship in the tax year 2023, which involves summarizing your business's revenue, expenses, and net profit or loss for the year. Now, we'll talk more about a sole proprietor type of business in future presentations. Right now, since we're looking at the income line items, we want to focus in and just show that this would be one item that could be included in income. We want to take the time now to note that if you're a tax preparer, then you might want to think about where you're specializing in your returns. Are you specializing in individual income tax returns, higher income tax returns, lower income tax returns in terms of income level, higher income being more complex? First, a word from our sponsor. Yeah, actually, we're sponsoring ourselves on this one, because apparently the merchandisers, they don't want to be seen with us. But that's okay, whatever, because our merchandise is better than their stupid stuff anyways. Like our Accounting Rocks product line. If you're not crunching cords using Excel, you're doing it wrong. A must-have product. Because the fact as everyone knows of accounting being one of the highest forms of artistic expression means accountants have a requirement, the obligation, a duty to share the tools necessary to properly channel the creative muse. And the muse, she rarely speaks more clearly than through the beautiful symmetry of spreadsheets. So get the shirt, because the creative muse, she could use a new pair of shoes. If you would like a commercial-free experience, consider subscribing to our website at accountinginstruction.com or accountinginstruction.thinkific.com.