How much self-employment tax must martin pay

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Question - Martin Galloway, the sole proprietor of a consulting business, has gross receipts of $45,000. His address is: 1223 Fairfield Street, Westfield, New Jersey and his SSN is 158-68-7799. Expenses paid by his business are Advertising $ 500 Supplies 2,900 Taxes and licenses 500 Travel (other than meals) 600 Business meals 400 Health insurance premiums (for Martin) 1,400 Individual retirement account contribution 2,500 During the year, Martin drives his car a total of 15,000 miles (700 business miles and 550 personal miles per month). He paid $100 for business-related parking and tolls. He paid $120 in fines for speeding tickets when he was late for appointments with clients. Martin's office is located in his home. His office occupies 500 of the 2,000 square feet in his home. His total (unallocated) expenses for his home are Mortgage interest $6,000 Property taxes 1,700 Insurance 700 Repairs and maintenance 300 Utilities 1,600 Depreciation for the business portion of his home is $1,364. What is Martin's net income (loss) from his business for 2019? How much self-employment tax must Martin pay? How would your answers to the above items change if Martin elects to use the simplified method for home office expenses?

Reference no: EM132565430

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