Question

In: Finance

Which of the following are considered self-employed persons?  Check all that apply. a. Partners in a partnership...

Which of the following are considered self-employed persons?  Check all that apply.

a.

Partners in a partnership

b.

> 2% owner/employees of S-Corporations

c.

C-Corporation shareholders/employees

d.

Sole proprietors

Your client, Mrs. M, owns a sole proprietorship. Her revenues are $130,000; Expenses are: $50,000 general; $5,000 employee health insurance; $3,000 for her health insurance. How much Self-Employment tax will she be able to deduct for AGI?

a. $11,475.00

b. $5,737.50

c. $5,298.58

d. $10,597.16

Solutions

Expert Solution

1) d. Sole proprietors  , Sole proprietors are independant who are entitled to receive all the profit earned from his business

2) a. $11,475    ,

  

Adjusted gross income = revenue $130,000 - Expenses $50,000 - employee health insurance $5,000

= $75000

Self employment tax= 15.3 % * $75000

= $11,475.00


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