Originally Posted by Darryl G
My business income and expenses all go on Schedule C of my 1040. I don't know how someone could possibly complete Schedule C with only total gross income and expenses. I know not everyone uses Schedule C, but I would imagine that a sole proprietor such as Yardguy would. My business is actually set up as an LLC with myself and wife as partnerrs but for tax purposes a sole proprietorship. I keep all of my receipts filed alphabetically by vendor name; I have a seperate manilla folder for each vendor for each year and have them filed chronologically by date within each folder.
Here's Schedule C: http://www.irs.gov/pub/irs-pdf/f1040sc.pdf
If you live in a common law state you can set up as a sole proprietor or as the form says LLC Disregarded entity.
I have quick books accounts mapped the various parts of the schedule C and import that into Turbo Tax.
It is not perfect but it does give me a big head start on filing those forms.