Kellye is a calendar year taxpayer who makes and sells custom dog collars. This year, her cash

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Kellye is a calendar year taxpayer who makes and sells custom dog collars. This year, her cash receipts were $10,000, and her cost to make the collars was $2,000. Additionally, Kellye contributed $2,000 to a retirement plan. What amount will be the basis for Kellye's self-employment tax?
a. $10,000
b. $8,000
c. $7,000
d. $6,000
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South Western Federal Taxation Individual Income Taxes 2017

ISBN: 9781305873988

40th Edition

Authors: William H. Hoffman, David M. Maloney, William A. Raabe, James C. Young, Nellen

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