Determine Cassi self-employment income and QBI deduction

Reference no: EM132708805

Question - 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 Purchased	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 - 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).

Reference no: EM132708805

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