Sonya Started a Self-Employed Consulting Business in the Last Part

question 72

Essay

Sonya started a self-employed consulting business in the last part of the year and earned $40,000.She had been employed as manager in a consulting firm prior to starting her own business and had earned $125,000.
(a)What is Sonya's self employment tax for 2016?
(b)What is Sonya's deduction for AGI for the SE tax?

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Definitions:

Puerto Rico

A Caribbean island and unincorporated U.S. territory with a unique culture that blends Indigenous, African, and Spanish influences.

Official Possession

The state of legally holding or owning something recognized by government or authoritative bodies.

Anti-insurgent Policies

Strategies and actions taken by a government to prevent, counteract, or quell activities considered rebellious or against the state's control, often in a military or strategic context.

Valeriano Weyler

A Spanish general who served as the Governor General of Cuba and was known for his repressive tactics against Cuban insurgents during the Cuban War of Independence.