Cassi (5SN 412 34-5670) has a home cleaning business she runs as a sole propietorship. The following are the results from buslness opentions for the tax year 2022 Required: Determine Cassis self-employment income and QB1 deduction. Prepare Schedule C and Schedule SE,5179 expense is elected on all ellgible assets (5. 179 wos not taken on assets purchased last year) (Use Iable 6A A.1) Note: Input oll the volues os positive numbers. Use Rounded volues for tox computotion. Do not round other intermediate computetions. Pound your finel answers to neorest whole dollne, instructions can be found on certoin cells within the forms. vepreciation and Amortization Part1 Election To Expense Certain Property Under Section 179 Note: If you have any listed property, complete Part V before you complete PartI. 1 Maximum amount (see instructions) . 2 Total cost of section 179 property placed in service (see instructions) 3 Threshold cost of section 179 property before reduction in limitation (see instructions) 4 Reduction in limitation. Subtract line 3 from line 2. It zero or less, enter -0 - 5 Dollar limitation for tax year. Subtract line 4 from line 1. If zero or less, enter -0 - If married fling separately, see instructions \begin{tabular}{|l|} \hline 1 \\ \hline 2 \\ \hline 3 \\ \hline 4 \\ \hline 5 \\ \hline \end{tabular} 6 (a) Decciption of propenty (b) Cost fusines ine ony (c) Elected cost 7 Listed property. Enter the amount from line 29 8 Total elected cost of section 179 property. Add amounts in column (c), lines 6 and 7 9 Tentative deduction. Enter the smaller of line 5 or line 8 10 Carryover of disallowed deduction from line 13 of your 2021 Form 4562 . 11 Business income limitation. Enter the smaller of business income (not less than zero) or line 5. See instructions 12 Section 179 expense deduction. Add lines 9 and 10 , but don't enter more than line 11 13 Caryover of disallowed deduction to 2023. Add lines 9 and 10 , less line 12 13 \begin{tabular}{|c|} \hline 8 \\ \hline 9 \\ \hline 10 \\ \hline 11 \\ \hline 12 \\ \hline \end{tabular} Note: Don't use Part lI or Part Ill below for listed property. Instead, use Part V. Part II Special Depreciation Allowance and Other Depreciation (Don't include listed property. See instructions.) 14 Special depreciation allowance for qualified property (other than listed property) placed in service during the tax year. See instructions. 15 Property subject to section 168(1)(1) election 16 Other depreciation (inoluding ACRS) Part III MACRS Depreciation (Don't include listed property. See instructions.) Section A 17 MACRS deductions for assets placed in service in tax years beginning betore 2022 18 It you are electing to group any assets placed in service during the tax year into one or more general 17 Search Section A 17 MACRS deductions for assets placed in service in tax years beginning before 2022 18 If you are electing to group any assets placed in service during the tax year into one or more general asset accounts, check here Section B-Assets Placed in Service During 2022 Tax Year Using the General Depreciation System Section C-Assets Placed in Service During 2022 Tax Year Using the Alemative Depreciation System Part IV Summary (See instructions.) 21 Listed property. Enter amount from line 28 22. Total. Add amounts from line 12, lines 14 through 17, lines 19 and 20 in column (g), and line 21. Enter here and on the appropriate lines of your retum. Partnerships and S corporations - see instructions. 22 23 For assets shown above and placed in service during the current year, enter the portion of the basis attributable to section 263A costs. For Paperwork Reduction Act Notice, see separate instructions. Part I Self-Employment Tax Note: If your only income subject to self-employment tax is church employee income, see instructions for how to report your income and the definition of church employee income: A If you are a minister, member of a religious order, or Christian Science practitioner and you filed Form 4361, but you had $400 or more of other net eamings from self-employment, check here and continue with Part Skip lines 1a and 1b if you use the farm optional method in Part II. See instructions. 1a Net farm profit or (loss) from Schedule F, line 34, and farm partnerships, Schedule K-1 (Form 1065), box 14 , code A. b If you received social security retirement or disability benefits, enter the amount of Conservation Reserve Program payments included on Schedule F, line 4b, or listed on Schedule K-1 (Form 1065), box 20, code AH Skip line 2 if you use the nonfarm optional method in Part Il. See instructions. 2 Net profit or (loss) from Schedule C, line 31; and Schedule K-1 (Form 1065), box 14, code A (other than farming). See instructions for other income to report or if you are a minister or member of a religious order 3 Combine lines 1a,1b, and 2 . 4a If line 3 is more than zero, multiply line 3 by 92.35%(0.9235). Otherwise, enter amount from line 3 Note: If line 4 a is less than $400 due to Conservation Reserve Program payments on line 1b, see instructions. b If you elect one or both of the optional methods, enter the total of lines 15 and 17 here c Combine lines 4a and 4b. If less than $400, stop; you don't owe self-employment tax. Exception: If less than $400 and you had church employee income, enter - 0 - and continue . 5a Enter your church employee income from Form W-2. See instructions for definition of church employee income b Multiply line 5 a by 92.35%(0.9235). If less than $190, enter -0 - 6 Add lines 4c and 5b 7 Maximum amount of combined wages and self-employment earnings subject to social security tax or the 6.2% portion of the 7.65% ralload retirement (ther 1) tax for 2022 the 6.2% portion of the 7.65% mailroad retirement (tier 1) tax for 202 ? Ba Total social security wages and tips (total of boxes 3 and 7 on Form(3) W-2) and railroad retirement (tier 1) compensation, If $147,000 or more, skip lines 8b through 10, and go to line 11 b Unreported tips subject to social secunity tax from Form 4137, line 10 c Wages subject to social security tax from Form 8919 , line 10. d Add lines 8a,8b, and 8c. 9 Subtract line 8d from line 7. If zero or less, enter -0- here and on line 10 and go to line 11 10 Multiply the smaller of line 6 or line 9 by 12.4%(0.124) 11 Multiply line 6 by 2.9%(0.029) 12 Self-employment tax. Add lines 10 and 11. Enter here and on Schedule 2 (Form 1040), line 4 13 Deduction for one-half of self-employment tax. Multiply line 12 by 50%(0.50). Enter here and on Schedule 1 (Form 1040), line 15 Part II Optional Methods To Figure Net Earnings (see instructions) Farm Optional Method. You may use this method only if (a) your gross farm income' wasn't more than $9,060, or (b) your net farm profits? were less than $6,540. 14 Maximum income for optional methods. 15 Enter the smaller of: two-thirds (P) of gross farm income' (not less than zero) or $6,040. Also, include this amount on line 4b above Nonfarm Optional Method. You may use this method only it (a) your net nonfarm profits' were less than $6.540 and also less than 72.189% of your gross nonfarm income." and (b) you had net earnings from self-employment of at least $400 in 2 of the prior 3 years. Caution: You may use this method no more than five times. 16 Subtract line 15 from line 14 . 17 Enter the smaller of: two-thirds (//) of gross nontarm incomes (not less than zero) or the amount on line 16. Also, include this amount on line 4b above 1 From Sch. F, line 9; and Seh, K-1 form 100S), bok 14, code B. 7 From Sch, C, ine 31 ; and Sch, K-1. Form 1065 , bex 14, code A 2 From Sch. F, line 34; and Sch. K-1 Form 1065, box 14, code A-minus the amount "From Sch. C, line 7; and Sch. K-1 from 1065, boox 14, cade C. you would have enthered on lne 16 had you not used the optional ithethod For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 113582 Schedule se (Form 1040) 2022 SCHEDULE C Profit or Loss From Business (Form 1040) (Sole Proprlotorship) Department of the Treasury Go to wwwirs.gow/SchoduloC for instructions and the latest intormation. Name of proprietor Social socurity number (SSN) A Principal business or protossion, including product or service (seo instructions) B Enter code from instructions C Business name. If no separate business namo, lodve blank. D Employer ib number (ED) (seineter) E Business address (nctuding sulte or room no) City, lown or post offico, state, and ZiP code F Accounting method (1) DCash (2) Accrual (3) Gother (specity) Yes No J it -Yes," did you or will you file required Form(s) 1099? Part I Income 1 Gross receipts or tales. See instructions for line 1 and check the boxit this income was roported to you on Form W-2 and the "Statutory employee" box on that form was chocked 2 Aetums and allowances Subtract line 2 trom line 1 Cost of goods sold from line 42 ) Gross profit Subtract line 4 from line 3 Other income, including federal and state gasoline or fuel tax credit or rofund (see instructions) 7 Gross income. Add lnes 5 and 6 Part II Expenses. Enter expenses for business use of your home only on line 30 . 8 Advertising 9 Car and truck expenses 10 Commissions and tees \begin{tabular}{|c|} \hline 8 \\ \hline 9 \\ \hline 10 \\ \hline \end{tabular} 28 Total expenses before expenses for buslness use of home. Add lines 8 through 27 a Tentative profit or (loss). Subtract line 28 from line 7 30 Expensen for business use of your home. Do not report those expenses elsewhero. Attach Form 8829 unloss using the simplifiod method. Seo instructiohs. Simplified mothod flers only: Enter the total squara footage of (a) your home: and (b) the part of your home used for business: Method Worksheet in the instructions to figure the amount to enter on line 30 31 Net profit or (loss). Subtract line 30 from line 29 . - If a profit, enter on both Schedule 1 (Form 1040), line 3; and on Schedule SE, line 2. (If you checked the box on line 1, soe instructions.) Estales and trusts, enter on Form 1041, line 3. - If a loss, you must go to lino 32 . 32 If you luwe a loss, check the box that describes your investment in this activity. Seo instructions. - If you cheched 32a, enter the loss on both Schedule 1 (Farm 1040), line 3, and on Schedule SE, line 2. of you checked the box on line 1, see the line 31 instructions.) Estates and trusts, enter on Form 1041, line 3. - If you checked 320. you munt attich Form 6198. Your loss may be lmited. For Paperwork Reduction Act Notice, see the separate instructions. Gat. No. 11334 Part IV Information on Your Vehicle. Complete this part only if you are claiming car or truck expenses on line 9 and are not required to file Form 4562 for this pusiness. See the instructions for line 13 to find out if you must file Form 4562 . 43. When did you place your vehicle in service for business purposes? imontlydayiyear) 44. Of the tolal number of miles you drove your velicle during 2022, emer the number of milos you used your vehiche for: a Businest b Commuting (see instructiona) e Other 44 Of the total number of miles you drove your vehicle during 2022, enter the number of miles you used your vohicle for: a Business b Commuting (see instructions) c Other 45 Was your vehicle avallable for personal use during off-duty hours? Yes No 46 Do you (or your spouse) have another vehlole available tor personal uso?. Yos No 47a Do you have evidence to support your deduction? Yes [ No b If "Yes," is the evidence written? Yes No Part V Other Expenses. List below business expenses not included on lines 8-26 or line 30 . 48 Total other expenses. Enter here and on line 27 a. Schedule 0 (Form 1040) 2022 Cassi (5SN 412 34-5670) has a home cleaning business she runs as a sole propietorship. The following are the results from buslness opentions for the tax year 2022 Required: Determine Cassis self-employment income and QB1 deduction. Prepare Schedule C and Schedule SE,5179 expense is elected on all ellgible assets (5. 179 wos not taken on assets purchased last year) (Use Iable 6A A.1) Note: Input oll the volues os positive numbers. Use Rounded volues for tox computotion. Do not round other intermediate computetions. Pound your finel answers to neorest whole dollne, instructions can be found on certoin cells within the forms. vepreciation and Amortization Part1 Election To Expense Certain Property Under Section 179 Note: If you have any listed property, complete Part V before you complete PartI. 1 Maximum amount (see instructions) . 2 Total cost of section 179 property placed in service (see instructions) 3 Threshold cost of section 179 property before reduction in limitation (see instructions) 4 Reduction in limitation. Subtract line 3 from line 2. It zero or less, enter -0 - 5 Dollar limitation for tax year. Subtract line 4 from line 1. If zero or less, enter -0 - If married fling separately, see instructions \begin{tabular}{|l|} \hline 1 \\ \hline 2 \\ \hline 3 \\ \hline 4 \\ \hline 5 \\ \hline \end{tabular} 6 (a) Decciption of propenty (b) Cost fusines ine ony (c) Elected cost 7 Listed property. Enter the amount from line 29 8 Total elected cost of section 179 property. Add amounts in column (c), lines 6 and 7 9 Tentative deduction. Enter the smaller of line 5 or line 8 10 Carryover of disallowed deduction from line 13 of your 2021 Form 4562 . 11 Business income limitation. Enter the smaller of business income (not less than zero) or line 5. See instructions 12 Section 179 expense deduction. Add lines 9 and 10 , but don't enter more than line 11 13 Caryover of disallowed deduction to 2023. Add lines 9 and 10 , less line 12 13 \begin{tabular}{|c|} \hline 8 \\ \hline 9 \\ \hline 10 \\ \hline 11 \\ \hline 12 \\ \hline \end{tabular} Note: Don't use Part lI or Part Ill below for listed property. Instead, use Part V. Part II Special Depreciation Allowance and Other Depreciation (Don't include listed property. See instructions.) 14 Special depreciation allowance for qualified property (other than listed property) placed in service during the tax year. See instructions. 15 Property subject to section 168(1)(1) election 16 Other depreciation (inoluding ACRS) Part III MACRS Depreciation (Don't include listed property. See instructions.) Section A 17 MACRS deductions for assets placed in service in tax years beginning betore 2022 18 It you are electing to group any assets placed in service during the tax year into one or more general 17 Search Section A 17 MACRS deductions for assets placed in service in tax years beginning before 2022 18 If you are electing to group any assets placed in service during the tax year into one or more general asset accounts, check here Section B-Assets Placed in Service During 2022 Tax Year Using the General Depreciation System Section C-Assets Placed in Service During 2022 Tax Year Using the Alemative Depreciation System Part IV Summary (See instructions.) 21 Listed property. Enter amount from line 28 22. Total. Add amounts from line 12, lines 14 through 17, lines 19 and 20 in column (g), and line 21. Enter here and on the appropriate lines of your retum. Partnerships and S corporations - see instructions. 22 23 For assets shown above and placed in service during the current year, enter the portion of the basis attributable to section 263A costs. For Paperwork Reduction Act Notice, see separate instructions. Part I Self-Employment Tax Note: If your only income subject to self-employment tax is church employee income, see instructions for how to report your income and the definition of church employee income: A If you are a minister, member of a religious order, or Christian Science practitioner and you filed Form 4361, but you had $400 or more of other net eamings from self-employment, check here and continue with Part Skip lines 1a and 1b if you use the farm optional method in Part II. See instructions. 1a Net farm profit or (loss) from Schedule F, line 34, and farm partnerships, Schedule K-1 (Form 1065), box 14 , code A. b If you received social security retirement or disability benefits, enter the amount of Conservation Reserve Program payments included on Schedule F, line 4b, or listed on Schedule K-1 (Form 1065), box 20, code AH Skip line 2 if you use the nonfarm optional method in Part Il. See instructions. 2 Net profit or (loss) from Schedule C, line 31; and Schedule K-1 (Form 1065), box 14, code A (other than farming). See instructions for other income to report or if you are a minister or member of a religious order 3 Combine lines 1a,1b, and 2 . 4a If line 3 is more than zero, multiply line 3 by 92.35%(0.9235). Otherwise, enter amount from line 3 Note: If line 4 a is less than $400 due to Conservation Reserve Program payments on line 1b, see instructions. b If you elect one or both of the optional methods, enter the total of lines 15 and 17 here c Combine lines 4a and 4b. If less than $400, stop; you don't owe self-employment tax. Exception: If less than $400 and you had church employee income, enter - 0 - and continue . 5a Enter your church employee income from Form W-2. See instructions for definition of church employee income b Multiply line 5 a by 92.35%(0.9235). If less than $190, enter -0 - 6 Add lines 4c and 5b 7 Maximum amount of combined wages and self-employment earnings subject to social security tax or the 6.2% portion of the 7.65% ralload retirement (ther 1) tax for 2022 the 6.2% portion of the 7.65% mailroad retirement (tier 1) tax for 202 ? Ba Total social security wages and tips (total of boxes 3 and 7 on Form(3) W-2) and railroad retirement (tier 1) compensation, If $147,000 or more, skip lines 8b through 10, and go to line 11 b Unreported tips subject to social secunity tax from Form 4137, line 10 c Wages subject to social security tax from Form 8919 , line 10. d Add lines 8a,8b, and 8c. 9 Subtract line 8d from line 7. If zero or less, enter -0- here and on line 10 and go to line 11 10 Multiply the smaller of line 6 or line 9 by 12.4%(0.124) 11 Multiply line 6 by 2.9%(0.029) 12 Self-employment tax. Add lines 10 and 11. Enter here and on Schedule 2 (Form 1040), line 4 13 Deduction for one-half of self-employment tax. Multiply line 12 by 50%(0.50). Enter here and on Schedule 1 (Form 1040), line 15 Part II Optional Methods To Figure Net Earnings (see instructions) Farm Optional Method. You may use this method only if (a) your gross farm income' wasn't more than $9,060, or (b) your net farm profits? were less than $6,540. 14 Maximum income for optional methods. 15 Enter the smaller of: two-thirds (P) of gross farm income' (not less than zero) or $6,040. Also, include this amount on line 4b above Nonfarm Optional Method. You may use this method only it (a) your net nonfarm profits' were less than $6.540 and also less than 72.189% of your gross nonfarm income." and (b) you had net earnings from self-employment of at least $400 in 2 of the prior 3 years. Caution: You may use this method no more than five times. 16 Subtract line 15 from line 14 . 17 Enter the smaller of: two-thirds (//) of gross nontarm incomes (not less than zero) or the amount on line 16. Also, include this amount on line 4b above 1 From Sch. F, line 9; and Seh, K-1 form 100S), bok 14, code B. 7 From Sch, C, ine 31 ; and Sch, K-1. Form 1065 , bex 14, code A 2 From Sch. F, line 34; and Sch. K-1 Form 1065, box 14, code A-minus the amount "From Sch. C, line 7; and Sch. K-1 from 1065, boox 14, cade C. you would have enthered on lne 16 had you not used the optional ithethod For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 113582 Schedule se (Form 1040) 2022 SCHEDULE C Profit or Loss From Business (Form 1040) (Sole Proprlotorship) Department of the Treasury Go to wwwirs.gow/SchoduloC for instructions and the latest intormation. Name of proprietor Social socurity number (SSN) A Principal business or protossion, including product or service (seo instructions) B Enter code from instructions C Business name. If no separate business namo, lodve blank. D Employer ib number (ED) (seineter) E Business address (nctuding sulte or room no) City, lown or post offico, state, and ZiP code F Accounting method (1) DCash (2) Accrual (3) Gother (specity) Yes No J it -Yes," did you or will you file required Form(s) 1099? Part I Income 1 Gross receipts or tales. See instructions for line 1 and check the boxit this income was roported to you on Form W-2 and the "Statutory employee" box on that form was chocked 2 Aetums and allowances Subtract line 2 trom line 1 Cost of goods sold from line 42 ) Gross profit Subtract line 4 from line 3 Other income, including federal and state gasoline or fuel tax credit or rofund (see instructions) 7 Gross income. Add lnes 5 and 6 Part II Expenses. Enter expenses for business use of your home only on line 30 . 8 Advertising 9 Car and truck expenses 10 Commissions and tees \begin{tabular}{|c|} \hline 8 \\ \hline 9 \\ \hline 10 \\ \hline \end{tabular} 28 Total expenses before expenses for buslness use of home. Add lines 8 through 27 a Tentative profit or (loss). Subtract line 28 from line 7 30 Expensen for business use of your home. Do not report those expenses elsewhero. Attach Form 8829 unloss using the simplifiod method. Seo instructiohs. Simplified mothod flers only: Enter the total squara footage of (a) your home: and (b) the part of your home used for business: Method Worksheet in the instructions to figure the amount to enter on line 30 31 Net profit or (loss). Subtract line 30 from line 29 . - If a profit, enter on both Schedule 1 (Form 1040), line 3; and on Schedule SE, line 2. (If you checked the box on line 1, soe instructions.) Estales and trusts, enter on Form 1041, line 3. - If a loss, you must go to lino 32 . 32 If you luwe a loss, check the box that describes your investment in this activity. Seo instructions. - If you cheched 32a, enter the loss on both Schedule 1 (Farm 1040), line 3, and on Schedule SE, line 2. of you checked the box on line 1, see the line 31 instructions.) Estates and trusts, enter on Form 1041, line 3. - If you checked 320. you munt attich Form 6198. Your loss may be lmited. For Paperwork Reduction Act Notice, see the separate instructions. Gat. No. 11334 Part IV Information on Your Vehicle. Complete this part only if you are claiming car or truck expenses on line 9 and are not required to file Form 4562 for this pusiness. See the instructions for line 13 to find out if you must file Form 4562 . 43. When did you place your vehicle in service for business purposes? imontlydayiyear) 44. Of the tolal number of miles you drove your velicle during 2022, emer the number of milos you used your vehiche for: a Businest b Commuting (see instructiona) e Other 44 Of the total number of miles you drove your vehicle during 2022, enter the number of miles you used your vohicle for: a Business b Commuting (see instructions) c Other 45 Was your vehicle avallable for personal use during off-duty hours? Yes No 46 Do you (or your spouse) have another vehlole available tor personal uso?. Yos No 47a Do you have evidence to support your deduction? Yes [ No b If "Yes," is the evidence written? Yes No Part V Other Expenses. List below business expenses not included on lines 8-26 or line 30 . 48 Total other expenses. Enter here and on line 27 a. Schedule 0 (Form 1040) 2022