This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams.

In this episode you will learn:

- The two-part "ordinary and necessary" test required for all Schedule C deductions.

- How to distinguish between deductible employee wages and non-deductible draws for a sole proprietor.

- The crucial difference between deducting contract labor versus wages and the associated tax forms.

- Why self-employed health insurance premiums are not deducted on Schedule C, a common exam trap.

- The importance of documentation and the rule against deducting the personal-use portion of expenses.

For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep