A taxpayer operates a business through a single-member LLC (disregarded for federal taxpurposes). The taxpayer contributes $30,000 cash and equipment worth $50,000 (having anadjusted basis of $20,000) to the LLC to fund its operations. The LLC obtains a loan from a bank of$100,000. Because the LLC has no established credit, the taxpayer has to personally guaranteethe loan. What is the taxpayer's amount at risk? O The taxpayer is at risk in the amount of$30,000. The taxpayer is at risk in the amount of $50,000. O The taxpayer is at risk in the amountof $80,000. O The taxpayer is at risk in the amount of $150,000.

The amount at risk for a taxpayer in a business is generally the amount of money and the adjusted…

Answered: A taxpayer operates a business through…

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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Assume the taxpayer does NOT wish to contribute to the Presidential Election Fund, unless otherwise stated in the problem. In addition, the taxpayers did NOT receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency during the year. During 2021, Cassandra Albright, who is single, worked part-time at a doctor's office and received a W-2. She also had a cash- basis consulting practice that had the following income and expenses: Revenue Laptop computer purchased 4/23/21 ($ 179 elected) Travel: 2,500 miles for business, 13,000 personal Supplies Cell phone charge $ 53,000 3,300 500 960 Cassandra (SSN 412-34-5670) resides at 1400 Medical Street, Apartment 3A, Lowland, CA 92273. Her W-2 shows the following: Wages Federal withholding Social security wages Social security withholding Medicare withholding State withholding Other income: $ 49,000 5,200 49,000 3,038 711 2,265 1099-INT Old Bank 2,200 1099-DIV Bake Company, Incorporated-Ordinary dividends…
For individual taxpayers, capital losses can be: deducted for AGI to the extent of capital gains included in the taxpayer's gross income. deducted from AGI to the extent of capital gains included in the taxpayer's gross income. deducted for AGI to the extent of capital gains included in the taxpayer's gross income plus $3,000. deducted from AGI to the extent of capital gains included in the taxpayer's gross income plus $3,000.
p2. Subject :- Accounting
GRADUATED TAX TABLE UNDER TRAIN LAW (January 1, 2018 to December 31, 2022) Over But not over The Tax shall be Plus Of Excess Over 250,000 250,000 400,000 20% 250,000 400,000 800,000 30,000 25% 400,000 800,000 2,000,000 130,000 30% 800,000 2,000,000 8,000,000 490,000 32% 2,000,000 8,000,000 2,410,000 35% 8,000,000
Ac. Which of the following statements regarding the home office deduction is true? In order to qualify for the deduction, a portion of the taxpayer's home must be used regularly and exclusively to meet with clients or customers. A home office deduction is not allowed for using the home office for administrative or management activities only. The home office deduction is limited to the taxable income of the business before the deduction. A depreciation deduction is not allowed for a home office.
A taxpayer would be required to pay Social Security and Medicare taxes for a domestic employee in all but one of the following situations. In which situation would this not be required? a.A cook who is paid $35,000 a year b.A nanny who earns $22,000 a year c.A baby-sitter who earns $1,300 a year d.A cleaning lady who is paid $8,000 a year e.The taxpayer would not have to pay Social Security and Medicare taxes in any of the above situations.
A taxpayer works for a single employer during the year (TY2018) and discovers that they withheld a total of $1,356 in VPDI. What is the amount of the credit that they can claim for this excess on their State return? (Look at the explanation as much as the answer) $0 - They only had a single employer. $0 - That is below the maximum amount and there is no excess. $0 - VPDI has no upper limit, unlike SDI. $206.33 - This is the excess over the $1,149.67 maximum.
A tax payer is treating real property used solely for business purposes for new real property to be used in his business. The real property originally cost $35,000 and he has taken $18,000 dollars in depreciation. The old real property is currently worth $20,000 dollars and the new real property the taxpayer wants in exchange is only worth $16,500.The other party agrees to get the taxpayer $3500 in addition to the new real property. What is the gain or loss recognized by the taxpayer on this transaction?
Terry owns land that serves as security for a $50,000 mortgage held by Key Bank. When Terry's tax basis is the land was $15,000 and the land's fair market value was $40,000, Key Bank forecloses on the land and takes title in full satisfaction of the mortgage balance. Which of the following statements is correct? a. If the mortgage is recourse, Terry must recognize gain on the foreclosure but no income from the discharge of indebtedness. b. If the mortgage is nonrecourse, Terry must recognize gain on the foreclosure but no income from the discharge of indebtedness. c. Terry only recognizes income from the discharge of indebtedness if the land was used in a trade or business. d. If the mortgage is nonrecourse, Terry must recognize gain on the foreclosure and income from the discharge of indebtedness. None of the above e.
This is US Tax and Law
1. You are a Tax Consultant for an Accounting firm. Your client has emailed you with a question. She loaned $20,000 to a co-worker to begin a new business several years ago. If her co-worker declares bankruptcy on August 15 of the current year, is Amy allowed to deduct the bad debt loss this year? Additionally, she wants to know if she can deduct the loss, what is the character of the loss?
Determine the total amount that will qualify for itemized deduction by the taxpayer. Rita needed some cash to attend a friend's 21st birthday COVID-themed bash in Nashville, but eas bit short of the amount required for the (safe)travel. She borrowed $500 form her sister for the trip and two months later repaid the amount along with $25 extra as an interest payment.

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