Question: Having hard time figuring out the what expense are eligible on the assets for Schedule SE. Cassi (SSN 412-34-5670) has a cash-basis home cleaning business

Having hard time figuring out the what expense are eligible on the assets for Schedule SE.

Cassi (SSN 412-34-5670) has a cash-basis home cleaning business she runs as a sole proprietorship. The following are the results from business operations for the tax year 2018:

Gross receipts$203,000Business mileage: 27,000 (miles incurred ratably throughout the year) 35,000 miles total during the year 2018Van (over 6,000 lbs) placed in service 1/01/18, cost 27,000Postage(500)Wages(26,000)Payroll taxes(1,950)Supplies(12,500)Phone(1,250)Internet service(600)Rent(2,400)Insurance(2,800)Van expenses(4,500)

Business assetsDate PurchasedCostComputer 15/18/18$2,200Computer 26/01/182,700Printer3/01/17900Copier3/02/172,100Furniture3/01/176,000

Determine Cassi's self-employment income and QBI deduction. Prepare Schedule C and Schedule SE. 179 expense is elected on all eligible assets ( 179 was not taken on assets purchased last year).(UseTable 6A-1)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!