2022 tax rules indicate what amounts, ifany, cannot be deducted on Schedule C andOf these expenses,explain why in each case.20 Home Office Expense. (Obj. 4) Rita operates a childcare service in her home. The rooms usedfor this purpose constitute 30% of the total living space of the home. Expenses of operatingthe home during the year included electricity, $3,600; water, $340; gas heating, $480; propertytaxes, $4,000; and home repairs, $800. The depreciation on the rooms used for childcare was$1,800. What is the total amount of expenses that Rita can deduct for using her own hometo provide childcare services if she uses these rooms 2,000 hours in 2021 for her childcarebusiness?

An expenditure is indeed the cost of doing business that a company incurs in order to generate…

20 Home Office Expense. (Obj. 4) Rita op OF for this purpose constitute 30% of th the home during the year included elec taxes, $4,000; and home repairs, $80 $1,800. What is the total amount of to provide childcare services if she u business?

20 Home Office Expense. (Obj. 4) Rita op OF for this purpose constitute 30% of th the home during the year included elec taxes, $4,000; and home repairs, $80 $1,800. What is the total amount of to provide childcare services if she u business?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.

Question

2022 tax rules

indicate what amounts, if
any, cannot be deducted on Schedule C and
Of these expenses,
explain why in each case.
20 Home Office Expense. (Obj. 4) Rita operates a childcare service in her home. The rooms used
for this purpose constitute 30% of the total living space of the home. Expenses of operating
the home during the year included electricity, $3,600; water, $340; gas heating, $480; property
taxes, $4,000; and home repairs, $800. The depreciation on the rooms used for childcare was
$1,800. What is the total amount of expenses that Rita can deduct for using her own home
to provide childcare services if she uses these rooms 2,000 hours in 2021 for her childcare
business?

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