Exam 6: Self-Employed Business Income Line 12 of Form 1040 and Schedule C

Byron took a business trip from Philadelphia to Rome.He was away 16 days of which he spent 9 days on business including two travel days)and 7 days vacationing.His expenses are as follows: Byron's total travel including meals and lodging)expense deduction rounded to the nearest dollar is:

Meals and entertainment expenses are limited to 50%.

Transportation costs are deductible when a taxpayer goes to a business meeting away from his or her regular workplace.

Paola purchased an office building on January 5,2014,for $450,000.$30,000 of the price was for the land.On September 25,2016,he sold the office building.What is the cost recovery deduction for 2016 rounded to the nearest dollar?

Chris runs a business out of her home.She uses 500 square feet of her home exclusively for the business.Her home is 2500 square feet in total.Chris had $36,000 of business revenue and $32,000 of business expenses from her home business.The following expenses relate to her home: What is Chris' net income from her business and the amount of expenses carried over to the following year,if any?

Ted purchased a vehicle for business and personal use.In 2016,Ted used the vehicle 70% for business 10,000 business miles)and used the standard mileage rate to calculate his vehicle expenses.Ted also paid $1,200 in interest and $380 in county property tax on the car.What is the total business deduction related to business use of the car in 2016?

The standard mileage rate encompasses all of the following auto costs except for:

Alan owns a ranch in Kansas.During the year,a tornado damaged one of his barns and destroyed some equipment.The following information provides the details of the losses Alan suffered from the tornado. FMV After Insurance Proceeds $ 40,000 $30,000 $ 0 $15,000 $ 0 $10,000 How much loss from the tornado can he deduct on his tax return for the current year?

Xavier bought furniture and fixtures 7-year property)on September 15,2016 for $505,000.He elects to expense as much as possible under Section 179 but does not elect the 50% bonus.Xavier's earned income for the year is $500,000.What is the maximum deduction Xavier can take in 2016 for the equipment? Round answers to the nearest dollar)

Bart has the following income and expenses for his Schedule C: What is Bart's self-employment income?

On July 15,2014,Travis purchased some office furniture for $20,000 to be used in his business.He did not elect to expense the equipment under §179 or bonus.On December 15,2016,he sells the equipment.What is his cost recovery deduction for 2016?

Bob took a business trip from Chicago to London.He was away 12 days of which he spent six days on business including two travel days)and six days vacationing.His expenses are as follows: Calculate Bob's travel expense deduction.

What form is filed to report the self-employment tax?

The §179 expense deduction is limited to earned income.

The cost of all personal property is recovered using a 200% declining-balance rate under MACRS.

For 2016,what is the social security tax rate and income limit for a self-employed individual?