Question
Cassi (SSN 412-34-5670) has a cash-basis home cleaning business she runs as a sole proprietorship. The following are the results from business operations for the
Cassi (SSN 412-34-5670) has a cash-basis home cleaning business she runs as a sole proprietorship. The following are the results from business operations for the tax year 2019:
Gross receipts$203,000
Business mileage: 27,000 (miles incurred ratably throughoutthe year) 35,000 miles total during the year 2019Van (over 6,000 lbs) placed in service 1/01/19, cost 27,000
Postage(500)
Wages(26,000)
Payroll taxes(1,950)
Supplies(12,500)
Phone(1,250)
Internet service(600)
Rent(2,400)
Insurance(2,800)
Van expenses(4,500)
Business assets Data Purchaset Cost
Computer 1 5/18/19 $2,200
Computer 2 6/01/19 2,700
Printer 3/01/18 900
Copier 3/02/18 2,100
Furniture 3/01/18 6,000
Required:
Determine Cassi's self-employment income and QBI deduction. Prepare Schedule C and Schedule SE. 179 expense is elected on all eligible assets ( 179 was not taken on assets purchased last year).(UseTable 6A-1)
The Qualified Business Income deduction (QBI) is?
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