1.

In January, Gregory, a self-employed consultant, attended a conference in his area of specialty in Las Vegas. His expenses were as follows:

Airfare $ 320

Taxis to hotel 45

Lodging 400

Entertainment 250

Meals 300

Tuition and fees 275

Mileage to Airport and back 90 miles

How much can Gregory deduct?

2.

In 2019, Melinda is employed at a local university and has wages of $55,000. Melinda also has a Schedule C business where she plays piano and sings at social events. She has net income from the Schedule C of $18,000.

1. What is Melindas self-employment tax?

2. If Melindas income had been $150,000 from the university, what would her self-employment tax be?

3. A taxpayer sells equipment used in business for $12,800 on October 31, 2019. The equipment was purchased on December 19, 2018 for $15,000 and was subject to depreciation in the amount of $2,400. How much is the gain or loss and what is the nature of the gain or loss?