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1.
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 2018:
Gross receipts $203,000
Business mileage: 27,000 (miles incurred ratably throughout the year) 35,000 miles total during
the year 2018
Van (over 6,000 lbs) placed in service 1/01/18, 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 1 5/18/18 $ 2,200
| Computer 2 | 6/01/18 |
| Printer | 3/01/17 |
| Copier | 3/02/17 |
| Furniture | 3/01/17 |
2,700
900
2,100
6,000
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). (Use Table 6A-1)
(Input all the values as positive numbers. Use Rounded values for tax computation. Do not round other intermediate computations. Round your final
answers to nearest whole dollar.)
Schedule C page 1 and Schedule SE page 2 for a single taxpayer with no dependents.
Form 4562.
| Schedule C | QBI | Schedule SE | Form 4562 P1 | Form 4562 P2 |
| Form 4562 | Depreciation and Amortization | OMB No. 1545-0172 | |
| (Including Information on Listed Property) | 2018 | ||
| Department of the Treasury – Internal Revenue | ▶ Attach to your tax return. | ||
| Service | (99) | ▶ Go to www.irs.gov/Form4562 for instructions and the latest information. | Attachment Sequence No. 179 |
| Name(s) shown on return | Business or activity to which this form relates | Identifying number | |
| Part I | Election To Expense Certain Property Under Section 179 | ||
| Note: | If you have any listed property, complete Part V before you complete Part I. | ||
| 1 Maximum amount (see instructions) | 1 | ||
| 2 Total Cost of section 179 property placed in service (see instructions) | 2 | ||
| 3 Threshold cost of section 179 property before reduction in limitation (see instructions) | 3 | ||
| 4 Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter -0- | 4 | ||
| 5 Dollar limitation for tax year. Subtract line 4 from line 1. If zero or less, enter -0-. If married filing separately, see instructions | 5 | ||
| 6 | (a) Description of property | (b) Cost (biz. use) | (c) Elected cost |
| Two Computers | |||
| 7 Listed property. Enter the amount from line 29 (this form) | 7 | ||
| 8 Total elected cost of section 179 property. Add amounts in column (c), lines 6 and 7 | 8 | ||
| 9 Tentative deduction. Enter the smaller of line 5 or line 8 | 9 | ||
| 10 Carryover of disallowed deduction from line 13 of your 2017 Form 4562 | 10 | ||
| 11 Business income limitation. Enter the smaller of business income (not less than zero) or line 5 (see instructions) | 11 | ||
| 12 Section 179 expense deduction. Add lines 9 and 10, but do not enter more than line 11 | 12 | ||
| 13 Carryover of disallowed deduction to 2019. Add lines 9 and 10, less line 12 | 13 | ||
| Note: | Do not use Part II or Part III below for listed property. Instead, use Part V. | ||
| Part II | Special Depreciation Allowance and Other Depreciation | (Do not include listed property.) | (See instructions.) |
| 14 Special depreciation allowance for qualified property (other than listed property) placed in service during the tax year (see instructions) | 14 | ||
| 15 Property subject to section 168(f)(1) election | 15 | ||
| 16 Other depreciation (including ACRS) | 16 |
Part III MACRS Depreciation (Do not include listed property.) (See instructions.)
Assignment Print View 10/28/19, 9:37 AM
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rev: 03_28_2019_QC_CS-164354, 04_10_2019_QC_CS-165695
!! Schedule SE Form 4562 P2 “”
Part III MACRS Depreciation (Do not include listed property.) (See instructions.)
| Section A | ||||||
| 17 MACRS deductions for assets placed in service in tax years beginning before 2018 | 17 | |||||
| 18 If you are electing to group any assets placed in service during the tax year into one or more general asset accounts, check here ▼ | ||||||
| Section B – Assets Placed in Service During 2018 Tax Year Using the General Depreciation System | ||||||
| (a) Classification of property | (b) Month and year placed in service | (c) Basis for depreciation (business/investment use only) | (d) Recovery period | (e) Convention | (f) Method | (g) Depreciation deduction |
| 19a 3-year property | ||||||
| b 5-year property | ||||||
| c 7-year property | ||||||
| d 10-year property | ||||||
| e 15-year property | ||||||
| f 20-year property | ||||||
| g 25-year property | 25 yrs. | S/L | ||||
| h Residential rental property | 27.5 yrs. | MM | S/L | |||
| 27.5 yrs. | MM | S/L | ||||
| i Nonresidential real property | 39 yrs. | MM | S/L | |||
| MM | S/L | |||||
| Section C – Assets Placed in Service During 2018 Tax Year Using the Alternative Depreciation System | ||||||
| 20a Class life | S/L | |||||
| b 12-year | 12 yrs. | S/L | ||||
| c 30-year | 30 yrs. | MM | S/L | |||
| d 40-year | 40 yrs. | MM | S/L | |||
| Part IV | Summary | (See instructions) | ||||
| 21 Listed property. Enter amount from line 28 | 21 | |||||
| 22 Total. Add amounts from line 12, lines 14 through 17, lines 19 and 20 in column (g), and line 21. Enter here and on the appropriate lines of | ||||||
| your return. Partnerships and S corporations – see instructions | 22 | |||||
| 23 For assets shown above and placed in service during the current year, enter the portion of the basis attributable | ||||||
| to section 263A costs | 23 | |||||
| For Paperwork Reduction Act Notice, see separate instructions. | Form 4562 (2018) | |||||
| UYA | ||||||
| THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM ITSELF. DO NOT USE THIS FORM FOR TAX FILINGS OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL. © 2019 McGraw-Hill Education. |