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 2021: Gross receipts 203,000 Business mileage: 27,000 (miles incurred ratably throughout the year) 35,000 miles total during the year 2021 Van (over 6,000 pounds) placed in service 1/01/2021, cost 27,000 Postage (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 Purchased Cost Computer 1 5/18/21 $ 2,200 Computer 2 6/01/21 2,700 Printer 3/01/20 900 Copier 3/02/20 2,100 Furniture 3/01/20 6,000 Required: 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)
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 2021: Gross receipts 203,000 Business mileage: 27,000 (miles incurred ratably throughout the year) 35,000 miles total during the year 2021 Van (over 6,000 pounds) placed in service 1/01/2021, cost 27,000 Postage (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 Purchased Cost Computer 1 5/18/21 $ 2,200 Computer 2 6/01/21 2,700 Printer 3/01/20 900 Copier 3/02/20 2,100 Furniture 3/01/20 6,000 Required: 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)
Chapter6: Business Expenses
Section: Chapter Questions
Problem 84TA
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Transcribed Image Text: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 2021:
Gross receipts
203,000
Business mileage: 27,000 (miles incurred ratably throughout the
year) 35,000 miles total during the year 2021
Van (over 6,000 pounds) placed in serviče 1/01/2021, cost 27,000
Postage
(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 Purchased
Cost
Computer 1
5/18/21
$ 2,200
Computer 2
6/01/21
2,700
Printer
3/01/20
900
Copier
3/02/20
2,100
Furniture
3/01/20
6,000
Required: 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)
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