What is Schedule C net income (Business income)?
Chapter9: Deduct Ions: Employee And Self-employed - Related Expenses
Section: Chapter Questions
Problem 21CE
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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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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT