rbynaker
Level 14
01-07-2021
09:14 PM
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@Brainstrom wrote:There seems to be a new question for the Schedule C section this year due to the covid. Part 3 line 18 want you to input a number??? How did the covid effect your business from March 2020 through December 2020 for self employment, what is the calculation for this input?
The draft instructions to Schedule SE indicate that you can use "any reasonable method" including prorating the income by the number of days before/after 3/27/20.
https://www.irs.gov/pub/irs-dft/i1040sse--dft.pdf
So 76.503% unless you really want to do a lot more work to figure the interest-free loan. I plan to generally discourage this but there may be a few clients who will want to do it anyway.