massage therapy journal

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Taking a Closer Look

Jim Taxpayer
Schedule C Analysis // Business Code 621399

 Sch C
Line #		  
Income:   
Gross Receipts 1 48,700 100.00%
Other Income 6 200 0.41%
Total income 7 48,900 100.41%
Expenses:   
Advertising 8 1,836 3.77%
Car Truck expenses 9 2,625 5.39%
Commissions 10 321 0.66%
Contract Labor 11 463 0.95%
Depreciation 13 1,539 3.16%
Employee Benefits 14 93 0.19%
Insurance 15 1,023 2.10%
Interest 16 409 0.84%
Legal and professional 17 726 1.49%
Office Expense 18 1,378 2.83%
Pension/Profit Sharing 19 73 0.15%
Rent of Equipment 20a 594 1.22%
Rent on other business property 20b 3,852 7.91%
Repairs and Maintenance 21 419 0.86%
Supplies 22 2,079 4.27%
Taxes and Licenses23 604 1.24%
Travel 24a 1,164 2.39%
Meals and Entertainment 24b 356 0.73%
Utilities 25 1,412 2.90%
Wages 26 2,698 5.54%
Other Expenses 27 5,338 10.96%
Expenses for Business Use of Home 30 487 1.00%
    
Total expenses 29,489 60.55%
    
NET PROFIT 31 19,411 39.86%

Fair Trade

Here's a question: Are services and products you trade for a massage therapy session taxable? The answer is yes — but some of these trades will be deductible while others will simply be taxable income.

For example, if you trade massage therapy sessions with the person who cleans your office, you would include the cost of the massage as income and take the janitorial expense as a deduction.

If the trade was with your hairstylist, however, you would still have $50 of taxable income, but no deductions. Hair services are a personal expense and so can't be used as business deductions.

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