Question: i need help with this Tax Accounting problem do scheduale c 1040 (2021) and scheduale SE (2021) Tim Smith is self-employed of an internet business
Tim Smith is self-employed of an internet business (Handy Hints) that provides handyman advice and tips for do-it-yourself home improvement projects. The site also serves as a portal for those looking for reputable contractors that provide a wide variety of home repair services. Tim has also compiled his work in an e-book that is sold via his website. His business is located at 4944 Townsend St. San Francisco, CA 94103 . Tim's Social Security number is 123-45-6789. His Employer Identification Number is 053897509 and his principal business code is 541089 . Tim uses the cash method of accounting. For the current year, he has the following revenue and expenses: Tim uses his truck for both business and personal purposes. The truck cost $40,230 on June 20,2020 . Tim pays $25,500 in cash and finances the balance through the dealer. He drives the truck 5,000 miles for business and drives a total of 15,000 miles during the year for personal purposes and commuting. He keeps records of all miles. The total expenses for the automobile are: repairs and maintenance of $360, insurance of $2,000 (due to several speeding tickets); gasoline of $2,455, and depreciation of $2,300.$1,000 in interest was paid on the loan on the car. Tim' spouse has her own car and Tim has written documentation to support all costs. Tim Smith is self-employed of an internet business (Handy Hints) that provides handyman advice and tips for do-it-yourself home improvement projects. The site also serves as a portal for those looking for reputable contractors that provide a wide variety of home repair services. Tim has also compiled his work in an e-book that is sold via his website. His business is located at 4944 Townsend St. San Francisco, CA 94103 . Tim's Social Security number is 123-45-6789. His Employer Identification Number is 053897509 and his principal business code is 541089 . Tim uses the cash method of accounting. For the current year, he has the following revenue and expenses: Tim uses his truck for both business and personal purposes. The truck cost $40,230 on June 20,2020 . Tim pays $25,500 in cash and finances the balance through the dealer. He drives the truck 5,000 miles for business and drives a total of 15,000 miles during the year for personal purposes and commuting. He keeps records of all miles. The total expenses for the automobile are: repairs and maintenance of $360, insurance of $2,000 (due to several speeding tickets); gasoline of $2,455, and depreciation of $2,300.$1,000 in interest was paid on the loan on the car. Tim' spouse has her own car and Tim has written documentation to support all costs
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