Reference no: EM132881160

Question - Cassi (SSN 412-34-5670) has a home cleaning business she runs as a sole proprietorship. The following are the results from business operations for the tax year 2020:

Gross receipts $203,000

Business mileage: 27,000 (miles incurred ratably throughout the year) 35,000 miles total during the year 2020

Van (over 6,000 lb) placed in service 1/01/2020, 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 Date Purchased Cost

Computer 15/18/20 $2,200

Computer 26/01/20 2,700

Printer 3/01/19 900

Copier 3/02/19 2,100

Furniture 3/01/19 6,000

Required - Determine Cassi's self-employment income and QBI deduction. Cassi does not elect to defer her self-employment tax under the Cares Act. Prepare Schedule C and Schedule SE. Section 179 expense is elected on all eligible assets (§ 179 was not taken on assets purchased last year). Cassi had qualifying health care coverage at all times during the tax year.