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For the current year he had sales revenue 1) Harrison operates a retail sports memorabilia shop as a sole proprietor. of $50,000. He had the
For the current year he had sales revenue 1) Harrison operates a retail sports memorabilia shop as a sole proprietor. of $50,000. He had the following expenses Cost of Goods Sold $20,000 $8,000 Mortgage Interest Expense on personal residence Property Taxes on personal residence $11,000 California State Income Tax Paid $5,000 $5,000 Wages FICA taxes paid on wages $382 Self-employed health insurance $3,000 Self-employment tax $565 Select one or more: a. Mortgage Interest and Property Taxes are deducted on Schedule A. b. The property taxes and state income taxes are limited to $10,000 C. Part of the California State Income Tax is deducted on Schedule C based on the percentage of income Harrison earned from his business relative to his total income. d. The $382 FICA taxes are not deductible e. The FICA taxes paid on the wages are deducted on Schedule C, f. The self-employed health insurance is not deducted on Schedule C. g. Harrison can claim the QBI deduction for the business. h. Half-of the self-employment tax is deducted on Schedule C
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