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1. Susan has a degree in computer science and runs a full-time business designing websites for all types of entities. She uses a room in

1. Susan has a degree in computer science and runs a full-time business designing websites for all types of entities. She uses a room in her home exclusively for the business where she has a dedicated desktop computer, laser printer, and fax machine. She also has a laptop computer dedicated to the business. She pays for high-speed internet, which is crucial to her business. She uses her car to make trips to meetings with clients as required. She has compiled a list (with documentation) for her tax preparer. All of the following are deductible business expenses except: a) Desktop and laptop computers b) High-speed internet service. c) Supplies (printer paper, print cartridges, etc.) d) Car expenses (mileage when a car is used for business)

2. Susan (see question 6 above) had a net profit of $95,000 for the tax year. She is married to George, and they have an eight-year-old son. George is a full-time employee with Why-me Company. George is eligible for an employer-subsidized health insurance plan covering himself only. The plan does not offer family insurance, which would cover Susan or their son. Susan has checked and has found health insurance with a monthly premium of $450 (for herself only), $600 (for herself and her child), and $700 (for the whole family). What would be her health insurance deduction? a) $7,200 on Schedule C b) $ 0 c) $5,400 d) $7,200 on line 29 of Schedule 1, Form 1040

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