a sole proprietor pays himself a salary from the proceeds of his business where does he deduct the amount he paid himself during the year
a a sole proprietor's salary is not deducted
b on form 1040 line7
c on form 1040 schedule C as a contract labor
d on form 1040 schedule c as wages
A sole proprietor's salary is not deducted |
Salary paid by a sole proprietor to himeself is not a tax deductible expense |
Income taxes are to be paid on all income before deducting salary of sole proprietor |
Option A is correct |
a sole proprietor pays himself a salary from the proceeds of his business where does he...
While spring cleaning, Ramon found an entire box of unreported receipts for his sole proprietor business. Ramon wants to amend his return to claim these business deductions. Which form(s) and/or schedule(s) does he need to send to the IRS to amend the return? Form 1040X. Form 1040X and a copy of his original return. Form 1040X, Schedule C, and any other forms or schedules affected by the change in his income. Form 1040X, Schedule C, and a copy of each...
Ross is a sole proprietor who started his business on June 1st. In May, he paid salaries of $7,000 and legal fees for the business formation of $4,500, before starting his business. How much can he immediately expense, if any, of startup cost and organizational expenditures?
Blake operated as a sole proprietor, reported on Schedule C form 1040. He used 350 square feet of his 2,100 sq ft rented Loft exclusively and regularly for business. Blake used the cash accounting method and had the following income and expenses for his Financial Planning business: gross receipts $36,960 expenses advertising $80 business insurance $685 business license $100 comprehensive life insurance entire year $7,788 office supplies $76 postage $38 rent entire year $14,400 renters insurance entire year $1,055 second...
Ross is a sole proprietor who started his business on June 1st. In May, he paid salaries of $7,000 and legal fees for the business formation of $4,500, before starting his business. How much can he immediately expense, if any, of startup cost and organizational expenditures?
USLUNI UI 15. Blake operated as a sole proprietor, reported on Schedule C (Form 1040). He used 350 square feet of his 2,100-square-foot rented loft exclusively and regularly for business. Blake used the cash accounting method and had the following income and expenses for his financial planning business • Gross receipts: $36,960 • Expenses: • Advertising: $80 • Business Insurance: $685 • Business license: $100 • Comprehensive health insurance (entire year): $7.788 • Office supplies: $76 • Postage: $38 •...
Question 73 of 75. Blake operated as a sole proprietor, reported on Schedule C (Form 1040). He used 350 square feet of his 2,100-square- foot rented loft exclusively and regularly for business. Blake used the cash accounting method and had the following income and expenses for his financial planning business: • Gross receipts: $36,960 • Expenses: • Advertising: $80 • Business insurance: $685 • Business license: $100 • Comprehensive health insurance (entire year): $7,788 • Office supplies: $76 • Postage:...
LJMark for tollow up Question 2 of 75 Wendy is a sole proprietor with one employee. She maintains a SIMPLE IRA in which she matches salary reduction contributions at the rate of 3% of the employee's compensation. Where on her tax return does she report her own contribution, and where does she report the contribution she makes on behalf of her employee? O Wendy's own salary reduction contribution and employer matches are reported on Schedule C because she has an...
Question 70 of 75. Blake operated as a sole proprietor, reported on Schedule C (Form 1040). He used 350 square feet of his 2,100-square- foot rented loft exclusively and regularly for business. Blake used the cash accounting method and had the following income and expenses for his financial planning business: • Gross receipts: $36,960 • Expenses: • Advertising: $80 • Business insurance: $685 • Business license: $100 • Comprehensive health insurance (entire year): $7,788 • Office supplies: $76 - Postage:...
Question 40 of 50. cmma is a sole proprietor with one employee. She maintains a SIMPLE IRA in which she matches salary reduction contributions at the rate of 3% of the employee's compensation. Emma's own salary reduction contribucion Ana ner own employer match are both reported on Form 1040. The matching contribution she makes to her employees SIMPLE IRA is reported on Schedule C. na ner own employer match are both reported on Form 1040. The matching contributions she makes...
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