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Complete Schedule C (Profit or Loss From Business) and Schedule SE (SelfEmployment Tax). You must include a Schedule C and Schedule SE attachment that shows
Complete Schedule C (Profit or Loss From Business) and Schedule SE (SelfEmployment Tax). You must include a Schedule C and Schedule SE attachment that shows how any combined lines are calculated.
James Arnold is the sole proprietor of an internet business (Handy Hints) that provides handyman advice and tips for do-it-yourself home improvement projects. The site also serves as a portal for those looking for reputable contractors that provide a wide variety of home repair services. James has also compiled his work in an e-book that is sold via his website. His business is located at 340 Battery St. San Francisco, CA 94111. James's Social Security number is 123-45-6789. His Employer Identification Number is 05- 9987561 and his principal business code is 541990. James uses the cash method of accounting. For the current year, he has the following revenue and expenses: Revenue from advertising on his site Revenue from referrals Revenue from book sales Home improvement conference registration fees Travel to conferences Hotels Meals Accounting fees Insurance expense Legal fees Office supplies Advertising on other websites $ 45,000 27,450 8,700 4,500 1,250 420 190 1,200 1,850 625 240 4,000 James uses his truck for both business and personal purposes. The truck cost $40,500 on June 20, 2019. James pays $25,500 in cash and finances the balance through the dealer. He drives the truck 7,500 miles for business and drives a total of 15,000 miles during the year for personal purposes and commuting. He keeps records of all miles. The total expenses for the automobile are: repairs and maintenance of $360, insurance of $2,000 (due to several speeding tickets); gasoline of $2,455, and depreciation of $2,300. $1,000 in interest was paid on the loan on the car. James' spouse has her own car and James has written documentation to support all costsStep by Step Solution
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