Martin, the sole proprietor of a consulting business, has gross receipts of $45,000 in 2013.
Expenses paid by his business are
Advertising.............................................$ 500
Supplies.................................................2,900
Taxes and licenses.......................................500
Travel (other than meals) ..............................600
Meals and entertainment................................400
Health insurance premiums (for Martin)...........1,400
Individual retirement account contribution........2,500
During the year, Martin drives his car a total of 15,000 miles (700 business miles and 550 personal miles per month). He paid $100 for business-related parking and tolls. He paid $120 in fines for speeding tickets when he was late for appointments with clients. Martin's office is located in his home. His office occupies 500 of the 2,000 square feet in his home. His total (unallocated) expenses for his home are
Mortgage interest............................$6,000
Property taxes.................................1,700
Insurance.........................................700
Repairs and maintenance......................300
Utilities........................................1,600
Depreciation for the business portion of his home is $1,364.
a. What is Martin's net income (loss) from his business?
b. How much self-employment tax must Martin pay?
c. Based on this information, are there any other deductions that Martin can claim on his individual tax return other than those reported on his Schedule C?