Questions -
Q1) During 2013, Regina, a sole proprietor, had the following income and expenses from her home jewelry business. Regina is also employed as an office assistant at a local business.
W-2 wages from employer: $28,000
Proceeds from jewelry sales: 15,000
Supplies for jewelry 5,000
Travel for jewelry 1,400
Charitable contributions to church: 3,000
a. What income or loss should be reported on Schedule C?
b. What is Regina's AGI?
Q2) Beau earned $25,000 of net earnings from a tax preparation business that he runs during tax seasons. He also earned a salary of $95,000 from his fulltime job. How much self-employment tax must he pay for 2013? (Round calculations to the nearest dollar).