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Susan Generated $55,000 of Net Earnings from the Conduct of a Tax

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Essay

Susan generated $55,000 of net earnings from the conduct of a tax preparation business that she operated during the tax-filing season. She also received wages of $78,200 from her full-time job. Compute the self-employment taxes due for 2018.


Definitions:

UCC

The Uniform Commercial Code, which is a comprehensive set of laws governing all commercial transactions in the United States.

Electronic Means

Utilizing digital technology and devices to facilitate communication, transactions, or information exchange.

Merchants

Individuals or businesses engaged in the trade of goods, services, or commodities for profit.

Market Value

The estimated amount for which an asset or service would exchange between a willing buyer and seller in an arm's length transaction.

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