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 2020:
Gross receipts $ 203,000
Business mileage: 27,000 (miles incurred ratably throughout the year) 35,000 miles total during the year 2020
Van (over 6,000 pounds) placed in service 1/01/2020, 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 Date Purchased Cost
Computer 1 5/18/20 $ 2,200
Computer 2 6/01/20 2,700
Printer 3/01/19 900
Copier 3/02/19 2,100
Furniture 3/01/19 6,000
Required: Determine Cassis 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). (use table 6A-1)
Please help me with that. Thanks!
TABLE 6A-1 General Depreciation System: 200% or 150% Declining Balance Switching to Straight-Line*
Half-Year Convention | ||||||
---|---|---|---|---|---|---|
Recovery Year | 3-Year | 5-Year | 7-Year | 10-Year | 15-Year | 20-Year |
1 | 33.33 | 20.00 | 14.29 | 10.00 | 5.00 | 3.750 |
2 | 44.45 | 32.00 | 24.49 | 18.00 | 9.50 | 7.219 |
3 | 14.81 | 19.20 | 17.49 | 14.40 | 8.55 | 6.677 |
4 | 7.41 | 11.52 | 12.49 | 11.52 | 7.70 | 6.177 |
5 | 11.52 | 8.93 | 9.22 | 6.93 | 5.713 | |
6 | 5.76 | 8.92 | 7.37 | 6.23 | 5.285 | |
7 | 8.93 | 6.55 | 5.90 | 4.888 | ||
8 | 4.46 | 6.55 | 5.90 | 4.522 | ||
9 | 6.56 | 5.91 | 4.462 | |||
10 | 6.55 | 5.90 | 4.461 | |||
11 | 3.28 | 5.91 | 4.462 | |||
12 | 5.90 | 4.461 | ||||
13 | 5.91 | 4.462 | ||||
14 | 5.90 | 4.461 | ||||
15 | 5.91 | 4.462 | ||||
16 | 2.95 | 4.461 | ||||
17 | 4.462 | |||||
18 | 4.461 | |||||
19 | 4.462 | |||||
20 | 4.461 | |||||
21 | 2.231 | |||||
* May not be used for farm business property generally placed in service after 1988. See Table 14, Rev. Proc. 87-57, 1987-2 CB 687. |
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