2019 Net Schedule-C Business income _184, 880 ____

Part II. Summary Sheet for the Sales of Business Property (Form 4797)

Step 1) Sales or Exchanges of Property Used in a Trade or Business (Held for More Than 1 Year)

Description of property (1)	Date acquired (2)	Date Sold (3)	Gross Sales Price (4)	Accumulated Depreciation (5)	Tax Basis (6)	Gain or (loss) (4-6)
A) Table			2,900	825	2175	725
B) Chairs			4,000	2,200	5,800	(1,800)
C)Truck			24,000	9,000	16,000	800
D)Storage Building			220,00	20,000	80,000	140,000

Step 2) Ordinary Gains and Losses (incl. property held 1 year or less). NONE

Step 3). Descriptions of Section 1245 property:

1) Description of property	2) Date acquired	3) Date Sold	4) Gain	5) Accumulated Depreciation	6) Amount of Gain reported as Ordinary (Lesser of 4 or 5)	7) Remaining Gain = (4) - (6)
Table				825	725	0
Truck				9000	8000	0

3 (a) Net the gains/loss in A,B,C,D ____146,925_______

3 (b) Total Amount reported on (6) above: _________8,725______

3 (c) = 3(a) - 3(b) ___138,200______ (Remaining Section 1231 Gain)

Part III. Summary Sheet on the Sales of Capital Assets (Form 8949) 1). Short-term

Description of property	Date acquired	Date Sold	Gross Sales Price	Depreciation allowed	Cost Basis	Gain or (loss)
Mkt Security						8,000

2) Long-term

Description of property	Date acquired	Date Sold	Gross Sales Price	Depreciation allowed	Cost Basis	Gain or (loss)
Land						3,000
Wine	2018	2019				1,000

Summary for Capital Gains and Losses:

1.Net Short-term totals	8,000
2. Net Long-term totals	4,000

Part IV: Netting Process

Short-term Capital Gains andLoss Carry-overs	Long-term Capital Gain (LTCG)
(10,000)	Collectibles	Unrecaptured 1250 Gain	Net Sec. 1231 Gain	Other Long-term capital gain
8,000
Net the Short-term Capital Gain or Losses above = _(2,000)_		Amount from Part II, 4(b) ___20,000____	Amount from Part II, 4(c) _118,200____	Part III, Net LTCG, excluding Collectibles _3,000____
Use the above amount to net against Collectibles, Unrecaptured Sec. 1250 Gain, LTCG, etc. on the right
Net Capital Gain: 140,200

Part V. Self-Employment Tax Computation 2019 Net Schedule-C income (from page 2): ___184,800_________ 2019 Self-Employment Tax: ____ Social security tax = (The lesser of Net Sch-C income or $132,900)*12.4%, round up to nearest dollar: _16,480 Medicare tax = (Net Schedule-C business income)*92.35%*2.9%, round up to nearest dollar: __4,951____ Total Self-Employment Tax = ___21,431_(round to the nearest dollar)_______ Part VI. Income Tax Computation A. Net Capital Gains (NCG from page 6) __140,200 B. Other Gains (the amount for Part II 3(b) on page 3) ___8725_____

C. Taxpayer's AGI (Net Schedule-C income, NCG, Other Gains, less one-half of Self-employment tax) AGI ____323,090______

D. Taxable Income before Qualified Business Income Deduction (AGI - 2019 Standard Deduction for Married Filing Jointly): ____298,690_______

E. Qualified Business Income Deduction (see page 8): __________

F: Taxable income: ________ (F=D-E)

G. Tax Computation

1) Tax based on tax rate schedule Y-1 ( use Taxable income - NCG) __________ What is the tax bracket (marginal rate) for them on Y-1? ____%

2) Tax on Capital Gains: a) 28% x _0 (if any) = Tax on collectibles b) For Unrecaptured Section 1250 gain, the applicable tax rate is the lesser of 25% or the marginal rate in step G(1) above. Tax on Unrecaptured Section 1250 Gain ___________

c) Gains subject to the 15% tax rate ___________ 3) Total Self-Employment Tax from Part V __21,431_____

Add G(1), G(2) and G(3), this is their total tax ____________

Note: Q: How is the deduction for Qualified Business Income (QBI) computed?

A: The SSTB (Specified Trade or Business) limitation does not apply if a taxpayer's taxable income is below $321,400 for a married couple filing a joint return and $160,700 for all other taxpayers in 2019; the deduction is the lesser of:

A) 20 percent of the taxpayer's QBI (Net Schedule-C income)

B) 20%*(excess of taxpayer's taxable income before QBI deduction over net capital gains)

If the taxpayer's taxable income is above the thresholds, the deduction may be limited based on whether the business is an SSTB, the W-2 wages paid by the business and the unadjusted basis of certain property used by the business.

Schedule Y-1-Married Filing Jointly or Qualifying Widow(er)

If taxable income is But not over: over: The tax is:

$ 0 $19,400 10% of taxable income

$ 19,400 $ 78,950 $1,940 plus 12% of the excess over $19,400

$ 78,950 $168,400 $9,086 plus 22% of the excess over $78,950

$168,400 $321,450 $28,765 plus 24% of the excess over $168,400

$321,450 $408,200 $65,497 plus 32% of the excess over $321,450

$408,200 $612,350 $93,257 plus 35% of the excess over $408,200

$612,350 $164,709.50 plus 37% of the excess over $612,350

Need help computing from E- G