James Arnold is the sole proprietor of an internet business (Handy Hints) that provides handyman advice and
Question:
James Arnold is the sole proprietor 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. James has also compiled his work in an e-book that is sold via his website. His business is located at 340 Gentry Dr. Stillwater, OK 74078. James ’s Social Security number is 123-45-6789. His Employer Identification Number is 05-9987561 and his principal business code is 541990. James uses the cash method of accounting. For the current year, he has the following revenue and expenses:
Revenue from advertising on his site $ 45,000
Revenue from referrals 27,450
Revenue from book sales 8,700
Home improvement conference registration fees 4,500
Travel to conferences 1,250
Hotels 420
Meals 190
Accounting fees 1,200
Insurance expense 1,850
Legal fees 625
Office supplies 240
Advertising on other websites 4,000
James uses his truck for both business and personal purposes. The truck cost $40,500 on June 20, 2019. James pays $25,500 in cash and finances the balance through the dealer. He drives the truck 7,500 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. James’ spouse has her own car and James has written documentation to support all costs.
Instructions: Complete Schedule SE (Self-Employment Tax).
Could you fill out just part 1 of the Schedule SE tax return?
Introduction To Federal Income Taxation In Canada
ISBN: 9781554965021
33rd Edition
Authors: Robert E. Beam, Stanley N. Laiken, James J. Barnett