Question

Daniel is a self-employed consultant. Until this year he was always an employee. He comes to...

Daniel is a self-employed consultant. Until this year he was always an employee. He comes to discuss his new business with you. As his tax accountant, you should: A. Discuss all of the above B. Discuss the self-employment tax, as well as the income tax, on business earnings in order to help Daniel estimate what he might owe in taxes for the year C. Discuss setting up a good record-keeping system for his new business D. Discuss the substantiation requirements for meals and entertainment. E. Discuss the rules for deducting automobile expenses

Homework Answers

Answer #1

Solution:-

Daniel is a self-employed consultant. Until this year he was always an employee. He comes to discuss his new business with you. As his tax accountant, you should:-

A. Discuss all of the above

Explanation:-

Discuss all of these choices:


-Discuss setting up a good record-keeping system for his new business.
-Discuss the substantiation requirements for meals and entertainment.
-Discuss the self-employment tax, as well as the income tax, on business earnings in order to help Daniel estimate what he might owe in taxes for the year.
-Discuss the rules for deducting automobile expenses.

Note: The term trade or business is not formally defined, although the term is used often in the Internal Revenue Code. When you are self-employed, the burden to show that expenses qualify falls to the individual.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Carl is a self-employed real estate agent. For the current year, his self-employment net earnings (revenues...
Carl is a self-employed real estate agent. For the current year, his self-employment net earnings (revenues minus expenses) are $80,000. He is also employed as an accountant with a gross salary of $70,000 for the year. Assume that the appropriate social security income ceiling for the year is $130,000 and that the self-employed FICA rates are 12.4% for social security and 2.9% for Medicare. What is Carl s self-employment tax liability for the year? $9,583 $10,901 $11,304 $12,240
Mark, a self- employed consultant, pastures for his health insurance out of pocket. He is not...
Mark, a self- employed consultant, pastures for his health insurance out of pocket. He is not eligible to be covered under any other insurance plan. his total premiums payoff for the great were $4,500. his meet earnings from self employment were$10,000. Mark can deductan adjustment to income of.? A. $0 B. $2,250 C. $3,150 D. $4,500
Chuy is a self-employed chef who owns a food truck. He employed a part-time employee, for...
Chuy is a self-employed chef who owns a food truck. He employed a part-time employee, for $1,500 per month, to help him run the food truck. On October 1st, Chuy fired the part-time employee and he hired his 15-year old son to do the same job as the part-time employee. He paid his son $3,500 per month for the rest of the year. Shortly after firing the part-time employee, Chuy was fined $2,250 by the city for violating the city's...
Colin, a self-employed consultant, uses a room of his home as a business office. This room...
Colin, a self-employed consultant, uses a room of his home as a business office. This room represents 10 percent of the home’s square footage. This year, Colin incurred the following expenses in connection with his home. Use Table 7-3 and Table 7-4. Home mortgage interest $ 12,980 Property tax on residence 2,200 Homeowner’s insurance 1,475 Utilities 2,100 Furnace repairs 300 Colin purchased the home in 2000 for $225,000. For MACRS depreciation purposes, he allocated $185,000 to the building and $40,000...
Ken is a self-employed architect in a small firm with four employees: himself, his office assistant,...
Ken is a self-employed architect in a small firm with four employees: himself, his office assistant, and two drafters, all of whom have worked for Ken full-time for the last four years. The office assistant earns $32,500 per year and each drafter earns $45,000. Ken’s net earnings from self-employment (after deducting all expenses and one-half of self-employment taxes) are $315,000. Ken is considering whether to establish an SIMPLE plan and has a few questions. e. If Ken is required to...
It's been a year since Brian, a self-employed professional accountant, started his business on December 31,...
It's been a year since Brian, a self-employed professional accountant, started his business on December 31, 2019. During the year, he provided accounting services and earned # 120 million. He has an accountant and two clerks. He himself has a monthly salary of 81,500,000 and pays 712,600,000 and 110,800,000 a year, respectively, to the accountant and clerk. The total PIT and social security costs for Bat and his staff for the year are 89936000. The cost of office supplies, including...
Problem #7 Shanita is a self-employed event planner. She has net earnings (profit) from her business...
Problem #7 Shanita is a self-employed event planner. She has net earnings (profit) from her business of $63,220. Her self-employment taxes for the year are? (Show Your work!) Problem #8 Venkat is age 32, single, and reported AGI of $67,000 in tax year 2019. He is an active participant in his employer's pension plan. What is the maximum deductible IRA contribution he can make in 2019? (Show your work!)
Oscar is self-employed and would like to know what kind of deduction he could get for...
Oscar is self-employed and would like to know what kind of deduction he could get for his home office. He has gross income from his business of $210,000. His total home square footage is 1,900. The square footage of her office is 150. Total utilities $700. Total home mortgage interest $10,000. Total real estate taxes $4,200. Explain to Oscar the two options for calculating the home office deduction. Based on the information provided what would be Oscar’s deduction be under...
33. LO.1 Amos is a self-employed tax attorney. He and Monica, his employee, attend a conference...
33. LO.1 Amos is a self-employed tax attorney. He and Monica, his employee, attend a conference in Dallas sponsored by the American Institute of CPAs. The following Problems expenses are incurred during the trip: registration: (Amos)$900, (Monica)$900 Airfare: (Amos)$1,200, (Monica)$700 Taxi fares: (Amos)$100, (Monica)$0 Lodging: (Amos)$750 (Monica)$300 a. Amos pays for all of these expenses. Calculate the effect of these expenses on Amos’s AGI b. Explain whether or not your answer to part (a) change if the American Bar Association...
For a single self-employed individual who runs a retail coffee shop is age 35 and has...
For a single self-employed individual who runs a retail coffee shop is age 35 and has no dependents. He opened his business in January 2018. He is a cash basis taxpayer. He reported following income and expense items connected with business: Income from sale:89000, Rent:17000, Utilities:6800, Supplies:2000, Insurance:5500. He purchased and placed in service some fixed assets for business. He wants to elect immediate expensing under  § 179:1.Machinery and Equip(new) costing 22000 on Jan 9, 2. Computer Equip(new) costing 13000 on...