What is Schedule C net income (Business income)?Paul sells real estate in the evening and on weekends (considered an active trade or business). He runs his business from a rental office he shares with several other realtors. Paul has been operating in a business-like way since 2004 and has always shown a profit. He had the following income and expenses from his business:Commissions earned $21,250 Expenses: Advertising 2,200Telephone 95Real estate license 130Rent 6,000Utilities 600 This real estate activity qualifies as a trade or business under the Internal Revenue Code for purposes of the Qualified Business Income deduction.

Schedule C:- While filing your Income Tax, if we have an income from business, then we must declare…

Answered: What is Schedule C net income (Business…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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What is Schedule C net income (Business income)?

Paul sells real estate in the evening and on weekends (considered an active trade or business). He runs his business from a rental office he shares with several other realtors. Paul has been operating in a business-like way since 2004 and has always shown a profit. He had the following income and expenses from his business:

Commissions earned $21,250

Expenses:

Advertising 2,200

Telephone 95

Real estate license 130

Rent 6,000

Utilities 600

This real estate activity qualifies as a trade or business under the Internal Revenue Code for purposes of the Qualified Business Income deduction.

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