my husband owns his own business paving driveways, on line 2 of Schedule C can I include discounts applied to every job he did on a 30 day net invoice? if a customer paid in full before the 30 day due date we gave them a percentage off. Also if the customer was not satisfied and we settled out of court by refunding a portion of cost can i enter that amount there too?
Yes you can deduct the discounts given to customers and the reduction in cost for the agreed-upon refunds for the out of court settlements. Also, don’t forget to deduct any legal fees you may have incurred on line 17. In case you have not seen it, check out the how to complete schedule C article that I wrote here:http://fitsmallbusiness.com/schedule-c-profit-and-loss-form-1040/.
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