Chapter 6 TRP 6-1

Cassi (SSN 412-34-5670) has a home cleaning business she runs as a sole proprietorship. The following are the results from business operations for the tax year 2022:

Gross receipts. $ 203,000

Business mileage: 27,000 (miles incurred ratably throughout the year) 35,000

miles total during the year 2022

Van (over 6,000 pounds) placed in service 1/01/2022, 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. 5/18/22. $ 2,200

Computer 2. 6/01/22. 2,700

Printer 3/01/21. 900

Copier. 3/02/21. 2,100

Furniture. 3/01/21. 6,000

Required:

Determine Cassi's self-employment income and BI 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.)

Note: Input all the values as positive numbers. Use Rounded values for tax computation. Do not round other intermediate computations. Round your final answers to nearest whole dollar. Instructions can be found on certain cells within the forms.