Carrie owns a business that she operates as a sole proprietorship. The business had a net profit
Question:
Carrie owns a business that she operates as a sole proprietorship. The business had a net profit of $25,000 in 2018. This is Carrie’s only earned income.
a. How much must she pay for self-employment taxes?
b. How much can she deduct on her tax return?
c. If the business had a net loss of $10,000 (instead of a $25,000 profit), how much in self-employment taxes must Carrie pay?
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Related Book For
Taxation For Decision Makers 2019
ISBN: 9781119497288
9th Edition
Authors: Shirley Dennis Escoffier, Karen A. Fortin
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