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

question 117

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 2014?
(b)What is Sonya's deduction for AGI for the SE tax?

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Definitions:

Financial Crises

Periods of significant disruptions in financial markets that are characterized by sharp declines in asset prices and the failure of financial institutions, leading to economic downturns.

Achaemenids

Refers to the first Persian Empire, ruled by the Achaemenid dynasty from approximately 550-330 BCE, known for its impressive administration system, monumental architecture, and multicultural approach to governance.

Lion Capital

The top part of an Ashokan pillar, famously known as the national emblem of India, featuring four lions standing back to back.

Ashoka

was an ancient Indian emperor of the Maurya Dynasty, who ruled the Indian subcontinent from c. 268 to 232 BCE, known for his conversion to Buddhism and spreading Buddhist principles.