James Jones is the owner of a small retail business operated as a sole proprietorship. During 2020, his business recorded the following items of income and expense:
Revenue from inventory sales $ 147,000
Cost of goods sold 33,500
Business license tax 2,400
Rent on retail space 42,000
Supplies 15,000
Wages paid to employees 22,000
Payroll taxes 1,700
Utilities 3,600
Required:
Compute taxable income attributable to the sole proprietorship by completing Schedule C to be included in James’s 2020 Form 1040.
Compute self-employment tax payable on the earnings of James’s sole proprietorship by completing a 2020 Schedule SE, Form 1040.
Assume that James's business is not a service business and that it has a $155,000 unadjusted basis in tangible depreciable property. Calculate James's 2020 QBI deduction, before any overall taxable income limitation.Compute taxable income attributable to the sole proprietorship by completing Schedule C to be included in Jamess 2020 Form 1Compute self-employment tax payable on the earnings of Jamess sole proprietorship by completing a 2020 Schedule SE, Form 104Assume that Jamess business is not a service business, and that it has $155,000 unadjusted basis in tangible depreciable
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