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Based on our findings above, petitioner is entitled to
Schedule C expense deductions relating to the L.A. Models Inc.
job, as follows:
Pictures $78.00
Parking 20.00
Agent 450.00
Directories 6.00
Education 27.00
Dues 3.00
Phone 14.00
Supplies 4.00
Ent., publicity &
networking 130.00
Mileage 176.00
Total expenses $908.00
Accordingly, respondent must subtract $908.00 of
unreimbursed business expense from petitioners’ 1997 Schedule A
to account for the expense deductions now allowed on Schedule C.
Petitioner’s net income from self-employment relating to the
L.A. Models Inc. job is as follows:
Self-employment income $2,250.00
Total expenses 908.00
Net income $1,342.00
Self-Employment Tax
Respondent determined that petitioners are liable for $318
of self-employment tax on the $2,250 of income received from L.A.
Models Inc. Section 1401 imposes a tax on the self-employment
income of individuals.
Self-employment income means the net earnings from self-
employment derived by an individual. Sec. 1402(b). In general,
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