Schedule C, Transportation, Travel Expenses, Meals And Entertainment, Business Gifts, Office in the Home (LO 3 1, 3 3, 3 4, 3 5, 3 9, 3 11) Margaret started her own business in the current year and will report a profit for her first year Her results of operations are as follows Gross income $45,000 Expenses Travel $1,000 Contribution to Presidential Election Campaign $100 Transportation (5,427 miles evenly throughout the year, using standard mileage method) Entertainment in total $4,200 Nine gifts at $50 each $450 Rent and utilities for apartment in total $10,500 (25 is used for a home office) Complete the table below to determine the net income Margaret should show on her Schedule C If an amount is zero, enter 0 If required, round the amounts to the nearest dollar Gross income 45000 Expenses BLANK Travel 1000 Political contribution 0 Transportation Entertainment 0 Gifts Rent and utilities Total expenses Taxable business income Feedback Area Feedback A taxpayer who operates a trade or business or practices a profession as a sole proprietorship must file a tax return reporting his or her taxable income or loss from the activity Schedule C is filed by self employed taxpayers Taxpayers may deduct the actual expenses of transportation, or they may be entitled to use a standard mileage rate to calculate their deduction for transportation costs Within limits, taxpayers are allowed a deduction for business gifts Some taxpayers operate a trade or business in their homes and qualify for home office deductions The home office deduction may not reduce the net income from the business below zero, except for mortgage interest and property taxes allocable to the office, which are generally tax deductible anyway if the taxpayer itemizes

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Schedule C, Transportation, Travel Expenses, Meals And Entertainment, Business Gifts, Office in the Home (LO 3.1, 3.3, 3.4, 3.5, 3.9, 3.11) Margaret started her own

Schedule C, Transportation, Travel Expenses, Meals And Entertainment, Business Gifts, Office in the Home (LO 3.1, 3.3, 3.4, 3.5, 3.9, 3.11)

Margaret started her own business in the current year and will report a profit for her first year. Her results of operations are as follows:

Gross income		$45,000
Expenses:
Travel		$1,000
Contribution to Presidential Election Campaign		$100
Transportation (5,427 miles evenly throughout the year, using standard mileage method)		?
Entertainment in total		$4,200
Nine gifts at $50 each		$450
Rent and utilities for apartment in total		$10,500
	(25% is used for a home office)

Complete the table below to determine the net income Margaret should show on her Schedule C.

If an amount is zero, enter "0". If required, round the amounts to the nearest dollar.

Gross income 45000
Expenses: BLANK
Travel 1000
Political contribution 0
Transportation
Entertainment 0
Gifts
Rent and utilities
Total expenses
Taxable business income

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A taxpayer who operates a trade or business or practices a profession as a sole proprietorship must file a tax return reporting his or her taxable income or loss from the activity. Schedule C is filed by self-employed taxpayers. Taxpayers may deduct the actual expenses of transportation, or they may be entitled to use a standard mileage rate to calculate their deduction for transportation costs.

Within limits, taxpayers are allowed a deduction for business gifts.

Some taxpayers operate a trade or business in their homes and qualify for home office deductions. The home office deduction may not reduce the net income from the business below zero, except for mortgage interest and property taxes allocable to the office, which are generally tax deductible anyway if the taxpayer itemizes.