Ms. Suzanne Morphy is a full time architect. She is also sells vegetables on the side from a small farm she runs in her backyard. In 2018, the first year of operation, she had aloss of $43500 and deducted the maximum allowable amount. What is the amount of her farm loss carryover to future years that can be applied against future farm income?

The subject of discussion is a lady named Suzanne Morphy and her financial difficulties. She is a…

Answered: Ms. Suzanne Morphy is a full time…

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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Amanda purchased a home for $520,000 in 2016. She paid $104,000 cash and borrowed the remaining $416,000. This is Amanda's only residence. Assume that in year 2021 when the home had appreciated to $780,000 and the remaining mortgage was $312,000, interest rates declined and Amanda refinanced her home. She borrowed $520,000 at the time of the refinancing, paid off the first mortgage, and used the remainder for purposes unrelated to the home. What is her total amount of her amount of acquisition indebtedness for purposes of determining the deduction for home mortgage interest? (Assume not married filing separately.)
Robert spent $6,000 to install a new asphalt roof on his main home. The roof meets the applicable Energy Star program requirements. Robert has never claimed the nonbusiness energy credit before. What is the maximum credit he may claim on his 2021 return?
Heather makes cash contributions during the current year of $30,000 and donates property worth $40,000 to a local hospital. She purchased the property several years ago for $32,000. Her adjusted gross income is $100,000. a. What is Heather's maximum deduction if the property is ordinary income property? b. What is Heather's maximum deduction if the property is long-term capital gain property?
Alexa owns a condominium near Cocoa Beach in Florida. In 2021, she incurs the following expenses in connection with her condo: Insurance $ 4,400 Mortgage interest Property taxes Repairs & maintenance Utilities 7,250 4,100 700 4,700 16,800 Depreciation During the year, Alexa rented out the condo for 130 days. She did not use the condo at all for personal purposes during the year. Alexa's AGI from all sources other than the rental property is $200,000. Unless otherwise specified, Alexa has no sources of passive income. Assume that in addition to renting the condo for 130 days, Alexa uses the condo for 8 days of personal use. Also assume that Alexa receives $50,250 of gross rental receipts and her itemized deductions exceed the standard deduction before considering expenses associated with the condo and that her itemized deduction for non-home business taxes is less than $10,000 by more than the real property taxes allocated to rental use of the home. Answer the following questions: Note…
Lina purchased a new car for use in her business during 2021. The auto was the only business asset she purchased during the year, and her business was extremely profitable. Calculate her maximum depreciation deductions (including §179 expense unless stated otherwise) for the automobile in 2021 and 2022 (Lina doesn’t want to take bonus depreciation for 2021 or 2022) in the following alternative scenarios (assuming half-year convention for all): (Use MACRS Table 1, Table 2, and Exhibit 10-10.) rev: 09_08_2021_QC_CS-275682 The vehicle cost $74,000, and she used it 80 percent for business. She sold it on March 1 of year 2. Year Depreciation Deduction 2021 2022
Please help me with the following question. During 2018, William purchases the following capital assets for use in his catering business: New passenger automobile (September 30) $51,500 Baking equipment (June 30) 6,500 Assume that William decides to use the election to expense on the baking equipment (and has adequate taxable income to cover the deduction) but not on the automobile (which has a 5-year recovery period), and he also uses the MACRS accelerated method to calculate depreciation but elects out of bonus depreciation. Click here to access the depreciation table and click here to access the annual automobile depreciation limitations. Calculate William's maximum depreciation deduction for 2018, assuming he uses the automobile 100 percent in his business.
On July 20, 2022, Mary purchased a passenger automobile that is used 75% for business. The automobile cost $60,000. If she does not elect section 179 and bonus depreciation, what is the depreciation on the automobile for 2022?
Mona owns a rental house that she has rented to various tenants since September of 2001. The backyard fence fell into disrepair in June of 2018. She had it replaced June 27th, 2018 for $8,399. lf Mona elects to use special depreciation for the new fence, what is the amount of current depreciation (excluding the amount of current special depreciation) for thisasset? a) $0b) $210c) $315d) $420
Lina purchased a new car for use in her business during 2021. The auto was the only business asset she purchased during the year, and her business was extremely profitable. Calculate her maximum depreciation deductions (including §179 expense unless stated otherwise) for the automobile in 2021 and 2022 (Lina doesn’t want to take bonus depreciation for 2021 or 2022) in the following alternative scenarios (assuming half-year convention for all): (Use MACRS Table 1, Table 2, and Exhibit 10-10.) The vehicle cost $30,800, and business use is 100 percent (ignore §179 expense).
On July 17, 2019, Ari purchases office furniture (7-year property) costing $50,000 for use in her business. She wishes to use the Section 179 election but does not elect to use bonus depreciation. Her taxable income before the Section 179 depreciation deduction is $25,000. What is the maximum total cost recovery deduction Ari can take for the current year?
Tamar owns a condominium near Cocoa Beach in Florida. In 2022, she incurs the following expenses in connection with her condo Insurance Advertising expense Mortgage interest Property taxes Repairs & maintenance : Utilities Depreciation $1,100 550 3,850 945 700 1,000 9,500 During the year, Tamar rented out the condo for 75 days, receiving $10,000 of gross income. She personally used the condo for 35 days during her vacation. Tamar's itemized deduction for nonrental taxes is less than $10,000 by more than the property taxes allocated to the rental use of the property. Problem 14-58 Parts a, b, c, d & e (Algo) Assume Tamar uses the IRS method of allocating expenses to rental use of the property. Required: a. What is the total amount of for AGI (rental) deductions Tamar may deduct in the current year related to the condo? b. What is the total amount of itemized deductions Tamar may deduct in the current year related to the condo? c. If Tamar's basis in the condo at the beginning of the…
After you determine the Amount Realized, Type and amount of Basis, and Gain or Loss of the following, explain what will be included in the Taxpayers income and why: Lois and Peter bought a home in Rhode Island when they got married in 1985 for 100,000. In December 2006 Peter got a job in Los Angeles to develop a cartoon sitcom. He and Lois moved out of their home and rented it out until 2009. From January 2009 through October 2009 there were no tenants, and Lois and Peter moved back in October 2009. April 2011 they listed their house for sale. They sold the house for 500,000.

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