Reba owns “Reba’s Kitchen Supplies” and sells gourmet kitchen supplies out of her home. She is considered a sole proprietor and uses the cash basis method of accounting in her business. During 2018, she paid quarterly federal income tax payments totaling $5,000. Her net income is considered qualified business income. Her income and expenses are below: Sales $95,000 Cost of goods sold 40,000 Insurance 2,500 Legal 850 Advertising 200 Additional information regarding the kitchen supply business is below: A. Purchased equipment during 2018 for $10,000 and wishes to take the maximum depreciation deduction B. Drove 2010 Ford Explorer 4,300 business miles (total miles overall = 12,000); use the standard mileage rate to calculate car and truck expenses. C. Home office: office used exclusively and on a regular basis; office space = 200 sq feet; total home = 1,600 sq feet Expenses for the whole house: Utilities $2,000; real estate taxes $4,200; insurance; 1,200; and interest $5,000. Basis of the home = $245,000. Value of the land = $75,000. Form 8829, Line 41 = 2.461%. What is the self employment Tax?
Reba owns “Reba’s Kitchen Supplies” and sells gourmet kitchen supplies out of her home. She is considered a sole proprietor and uses the cash basis…
by | Jun 19, 2022 | accounting
We offer the best custom paper writing services. We have done this question before, we can also do it for you.
- 100% non-plagiarized Papers
- 24/7 /365 Service Available
- Affordable Prices
- Any Paper, Urgency, and Subject
- Will complete your papers in 6 hours
- On time Delivery
- Money-back and Privacy guarantees
- Unlimited Amendments upon request
- Satisfaction guarantee
How It Works
- Click on the “Place Your Order” tab at the top menu or “Order Now” icon at the bottom and a new page will appear with an order form to be filled.
- Fill in your paper’s requirements in the "PAPER INFORMATION" section.
- Fill in your paper’s academic level, deadline and the required number of pages from the drop-down menus.
- Click “PREVIEW” to enter your registration details and get an account with us for record keeping and then, click on “PROCEED TO CHECKOUT” at the bottom of the page.
- From there, the payment sections will show, follow the guided payment process and your order will be available for our writing team to work on it.