Reference no: EM132674104

Cassi (SSN 412-34-5670) has a cash-basis home cleaning business she runs as a sole proprietorship. The following are the results from business operations for the tax year 2019:

Gross receipts$203,000
Business mileage: 27,000 (miles incurred ratably throughout the year) 35,000 miles total during the year 2019 Van (over 6,000 lbs) placed in service 1/01/19, cost 27,000
Postage (500)
Wages (26,000)
Payroll taxes (1,950)
Supplies (12,500)
Phone (1,250)
Internet service (600)
Rent (2,400)
Insurance (2,800)
Van expenses (4,500)

Business assets Data          Purchaset Cost
Computer 1 5/18/19                 $2,200
Computer 2 6/01/19                2,700
Printer 3/01/18                       900
Copier 3/02/18                       2,100
Furniture 3/01/18                  6,000

Required:

Problem 1: Determine Cassi's self-employment income and QBI deduction. Prepare Schedule C and Schedule SE. § 179 expense is elected on all eligible assets (§ 179 was not taken on assets purchased last year).