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Assignment Print View 10/28/19, 9:37 AM
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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.

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