Question
Betty operates a beauty salon as a sole proprietorship. Betty also owns and rents an apartment building. This year Betty had the following income and
Betty operates a beauty salon as a sole proprietorship. Betty also owns and rents an apartment building. This year Betty had the following income and expenses. You may assume that Betty will owe $2,542 in self-employment tax on her salon income, with $1,271 representing the employer portion of the self-employment tax. You may also assume that her divorce from Rocky was finalized in 2016. Interest income $ 12,340 Salon sales and revenue 87,060 Salaries paid to beauticians 45,600 Beauty salon supplies 23,470 Alimony paid to her ex-husband, Rocky 6,350 Rental revenue from apartment building 32,480 Depreciation on apartment building 13,250 Real estate taxes paid on apartment building 11,380 Real estate taxes paid on personal residence 6,444 Contributions to charity 4,468 b-1.
Complete Schedule 1 of Form 1040 for Betty.
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