Which of the following expenses of a sole proprietor is not deducted on Schedule C?
a. Incorrect. Advertising costs are deductible on the line provided for such costs on Schedule C.
b. Incorrect. Work-related education costs are deducted on Schedule C even though there is no dedicated line for these expenses; they are entered in Part V of Schedule C with “other expenses.”
c. Incorrect. A business owner”s policy for liability and property insurance for the business is deductible on Schedule C.
d. Correct. Health insurance premiums for a policy covering the sole proprietor, spouse, and dependent are deducted from gross income as an adjustment. Premiums paid to cover employees are deductible on Schedule C.