Hi expart Provide solution for this accounting question Mr. King is employed as a plumber by MBV Services. Thisyear, Mr. King paid a $225 fee to renew his state-issuedplumber's license and $1,275 for supplies he uses on thejob. In the following case, compute Mr. King's after-taxcost of these employment-related expenses.Mr. King received no reimbursement from his employer.His AGI is $41,000, he itemizes deductions, and hismarginal tax rate is 15 percent.

Step 1: Get the total related expense and multiply it by the Marginal Tax Rate (1,275+225)*15% =…

Answered: Mr. King is employed as a plumber by…

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter10: Deductions And Losses: Certain Itemized Deductions

Section: Chapter Questions

Problem 28P

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Troy, a cash basis taxpayer, is employed by Eagle Corporation, also a cash basis taxpayer. Tray is a full-time employee of the corporation and receives a salary of 60,000 per year. He also receives a bonus equal to 10% of all collections from diems he serviced during the year. Determine the tax consequences of the following events to the corporation and to Troy: a. On December 31, 2019, Troy was visiting a customer. The customer gave Troy a 10,000 check payable to the corporation for appraisal services Troy performed during 2019. Troy did not deliver the check to the corporation until January 2020. b. The facts are the same as in part (a), except that the corporation is an accrual basis taxpayer and Troy deposited the check on December 31, but the bank did not add the deposit to the corporations account until January 2020. c. The facts are the same as in part (a), except that the customer told Troy to hold the check until January 2020 when the customer could make a bank deposit that would cover the check.
On July 20,2019, Kelli purchases office equipment at a cost of $12,000. Kelli elects out of bonus depreciation but makes the election to expense for 2019. She is selfemployed as an attorney, and, in 2019, her business has a net income of $6,000 before considering this election to expense. Kelli has no other income or expenses for the year. What is the maximum amount that Kelli may deduct for 2019 under the election to expense, assuming she elects to expense the entire $12,000 purchase? $24,000 $12,000 $6,000 $3,000 $1,000
Shanna, a calendar year and cash basis taxpayer, rents property to be used in her business from Janice. As part of the rental agreement, Shanna pays 8,400 rent on April 1, 2019, for the 12 months ending March 31, 2020. a. How much is Shannas deduction for rent expense in 2019? b. Assume the same facts, except that the 8,400 is for 24 months rent ending March 31, 2021. How much is Shannas deduction for rent expense in 2019?
None
Zofia is self-employed, files a Schedule C, and owns a business that is a qualified business for calculation of QBI. Zofia had $94,000 in taxable business income on Schedule C. On 10/30/2021, Zofia sold some office equipment for $7,020 that was purchased on 04/01/2018 for a cost of $8,775. The office equipment is being depreciated over 7-year MACRS half-year convention. Zofia has no other qualified businesses. Zofia's taxable income for the income limitation is $102,000. (Hint: it will be useful to use information from Chapter 7, Form 8995, Schedule 1, and Form 1040 as a guide.) Use Table 6A-1 Required: What is the Section 1245 depreciation recapture (if any) on the sale of the office equipment? What is the self-employment deduction on the income from Zofia’s business? What is Zofia’s Qualified Business Income (QBI) for Form 8995? What is Zofia’s Qualified Business Income Deduction (QBID) for Form 8995? Assuming there are no other items for Form 8995, what amount(s) will be entered on…
Kyle, a single taxpayer, worked as a freelance software engineer for the first three months of 2021. During that time, he earned $44,000 of self-employment income. On April 1, 2021, Kyle took a job as a full-time software engineer with one of his former clients, Hoogle Incorporated From April through the end of the year, Kyle earned $178,000 in salary. What amount of FICA taxes (self-employment and employment related) does Kyle owe for the year?
Jeremy is a calendar-year taxpayer who sometimes leases his business equipment to local organizations. He recorded the following receipts this year. Indicate the extent to which these payments are taxable income to Jeremy this year if Jeremy is (1) a cash-method taxpayer and (2) an accrual-method taxpayer. (Leave no answers blank. Enter zero if applicable.) b. $860 from the Ladies' Club for leasing the trailer from December of this year through March of next year ($215 per month). Income under cash method Income under accrual method
Kyle, a single taxpayer, worked as a freelance software engineer for the first three months of 2021. During that time, he earned $82,000 of self-employment income. On April 1, 2021, Kyle took a job as a full-time software engineer with one of his former clients, Hoogle Incorporated From April through the end of the year, Kyle earned $182,000 in salary.What amount of FICA taxes (self-employment and employment related) does Kyle owe for the year?
Jeremy is a calendar-year taxpayer who sometimes leases his business equipment to local organizations. He recorded the following receipts this year. Indicate the extent to which these payments are taxable income to Jeremy this year if Jeremy is (1) a cash-method taxpayer and (2) an accrual-method taxpayer. (Leave no answers blank. Enter zero if applicable.) c. $355 lease payment received from the Men's Club this year for renting Jeremy's trailer last year. Jeremy billed the club last year, but recently he determined that the Men's Club would never pay him, so he was surprised when he received the check. Income under cash method Income under accrual method
Soyala had $62,401 of income from wages and $119 of taxable interest. Soyala also made contributions of $2,500 to a tax-deferred retirement account. Soyala has 3 dependents and files as head of household.What is Soyala's total income?What is Soyala's adjusted gross income?For Soyala's filing status, the standard deduction is $9,250, and the exemption amount is $4000 per exemption. What is Soyala's taxable income?
Zofia is self-employed, files a Schedule C, and owns a qualified business for calculation of QBI. Zofia had $80,000 in taxable business income on Schedule C. On 10/30/2022, Zofia sold some office equipment for $6,660 that was purchased on 04/01/2019 for a cost of $8,325. The office equipment is being depreciated over seven year MACRS half-year convention. Zofia has no other qualified businesses. Zofia's taxable income for the income limitation is $102,000. (Hint: it will be useful to use information from Chapter 6, Form 8995, Schedule 1, and Form 1040 as a guide.) Use Table 6A-1 Required: a. What is the Section 1245 depreciation recapture (if any) on the sale of the office equipment? b. What is the self-employment deduction on the income from Zofia's business? c. What is Zofia's Qualified Business Income (QBI) for Form 8995? d. What is Zofia's Qualified Business Income Deduction (QBID) for Form 8995? e. Assuming there are no other items for Form 8995, what amount(s) will be entered on…
Taxpayer operates a trucking business using the accrual method and reports on a calendar year. This year, Taxpayer signed a $50,000 binding contract with Complete Auto Repair. Under the contract, Complete Auto Repair will provide Taxpayer with up to 3,000 hours of vehicle repairs at $20 per hour. This year, Complete Auto Repair provided 300 hours of repair services and billed Taxpayer $6,000 for those services. At year-end, Taxpayer had not paid Complete Auto Repair for the services. Determine the amount Taxpayer may deduct for the repair services this year. If none, enter 0

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