Thank you so much.

The Information from IRS 6744 on 2017 Tax Returns, pg.94-103.

https://www.irs.gov/pub/irs-pdf/f6744.pdf

OR

https://www.scribd.com/document/362498520/Advanced-Scenario-7-Austin-Drake-2018

Advanced Scenario 7: Austin Drake

25. What income must Austin report for his business on Schedule C-EZ or C?

a. Income reported on Form 1099-MISC for classes he taught at the gym.

b. Cash income in payments from individual clients.

c. None. He must report all income from his personal training business on Line 21, Other income.

d. Both his income reported on the Form 1099-MISC and the cash income from his clients.

26. What is Austin's mileage expense deduction (at the standard mileage rate) for his business as a personal trainer?

a. $1,525

b. $2,220

c. $3,531

d. $4,227

27. Which item(s) cannot be deducted by Austin as a business expense? (Select all that apply.)

a. Business license

b. Business liability insurance

c. Advertising

d. Nutritional supplements

28. How does Austin's self-employment tax affect his tax return?

a. Austin's self-employment tax is not reported anywhere on Form 1040.

b. A portion of the self-employment tax is deducted as a business expense on Schedule C-EZ or C.

c. The self-employment tax is shown on Form 1040, Other Taxes section, and the full amount is deducted on Schedule A, Taxes You Paid section.

d. The self-employment tax is shown on Form 1040, Other Taxes section, and the deductible part is an adjustment on Form 1040, page 1.