First, they told me if I voted for McCain that the IRS would take people's homes and kick them out on the street....
Schedule SE is a very evil form. There is no deductions it was a straight 15.3% FICA and 2.9% medicare. However under the tax hike known as Obama HellCare medicare is now 4.5%. So that is 18.2% off your income up to $107,000. Employees only pay half and your employer pays half, which could be going to the employee but goes to Big Government.
I'll assume that the $50K is the net profit from Sched C and his premiums are $12k/year.
50K*.182 = $9100 (which you can deduct 50% of $4500).
$50000-4500-12000=$33500
Stick with the standard deduction of $5700 and exemption of $3650 and your adjusted gross income is $24,150.
Income tax as a single filer is $3201
TOTAL PAID TO BIG GOVERNMENT IS $9100+$3201= $12301.
Take home without state and city income taxes is $37,699 or netting $725/week.
After taking out insurance $37,699-$12,000=$25,699 or $494/week net.
That does not include the 12hr/day that it's partner works. Sounds to me like someone made a bad decision in buying an overpriced condo and a loan that was unsustainable or a bouncy and a bad one at that.
DUmmies lie, DUmmies lie all the time.
