When we talking about business, We need to recognized allowed and unallowed expenses.

remember as a business entity, we record necessary expenses against ordinary expenses. be aware of what's necessary and what is ordinary.

Elaborate how taxes affect when conducting business, depending on the business what type of deduction are we allowed to take? create a scenario of your dream business, now that you understand self-employment.

income:

cash receipts $ 1,400

1099-NEC $ 45,000

1099-k $ 540

donation received $ 2,500

Expense

Amazon purchase $ 4,500 (office-related expenses)

BJs $ 2,300

gas $ 4,000

telefono $ 560

tax prep fees $ 540

insurance liability $3400

rent $ 7800

education $ 1500

1. report your entries on Sch C.

2 self-employment tax, attach SCH SE

3 and 1040 tax results

Moreover, indicate the Qualifying Business Income Deduction base on your result.

Use the information provided. base on the business you will report many of the deductions and/or income may not apply.

NOTE: please USE pro connect tax software