- 11 - 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,Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011