Net Operating Loss. During 2021, Karen, a single taxpayer, reports the following income and expense items relating to her interior design business: $52,000 41,000 3,300 1,700 13,800 28,000 Revenues Cost of goods sold Advertising Office supplies Rent Contract labor Karen also worked part-time during the year, earning $13,500. She reports a long-term capital gain of $4,200, and a short-term capital loss of $3,800. Her itemized deductions total $5,200. a. What is Karen's taxable income or loss for the year? h. What is Karrn's NOL for the yrar?

Net Operating Loss. During 2021, Karen, a single taxpayer, reports the following income and expense items relating to her interior design business: $52,000 41,000 3,300 1,700 13,800 28,000 Revenues Cost of goods sold Advertising Office supplies Rent Contract labor Karen also worked part-time during the year, earning $13,500. She reports a long-term capital gain of $4,200, and a short-term capital loss of $3,800. Her itemized deductions total $5,200. a. What is Karen's taxable income or loss for the year? h. What is Karrn's NOL for the yrar?

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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Lance is entering an invoice for a new item of equipment in the accounts. The invoice shows the following costs: Water treatment equipment $39,800 Delivery $1,100 Maintenance charge $3,980 Sales tax $7,854 Invoice total $52,734 Lance is registered for sales tax. What is the total value of capital expenditure on the invoice?
Hw.37.
Mike, a self-employed consultant, incurs the following business-related expenses in 2020: Actual automobile expenses Moving expenses Entertainment expenses Travel expenses (including $500 of business meals) Professional dues and subscriptions Total $ 2,500 4,000 1,500 2,500 500 $ 11,000 Mike earned $130,000 of gross income from his consulting business and had $12,000 of interest and dividend income in 2020 before any of the above expenses are deducted. He has $20,000 of itemized deductions. Mike is married and files a joint return with his wife, Ann, who has no income. a. What is the amount of Mike's deduction for business-related expenses for 2020? b. What is Mike and Ann's AGI and taxable income in 2020, assuming he is married and files a joint return, and ignoring the self-employment tax?
am. 117.
Interview Notes Barbara is age 57 and was widowed in 2021. She owns her own home and providedall the cost of keeping up her home for the entire year. Her only income for 2021 was$36,000 in W-2 wages. Jenny, age 24, and her daughter Marie, age 3, moved in with her mother, Barbara,after she separated from her spouse in April of 2021. Jenny’s only income for 2021was $15,000 in wages. Jenny provided over half of her own support. Marie did notprovide more than half of her own support. Jenny will not file a joint return with her spouse. She did not receive advance childtax credit payments for 2021. All individuals in the household are U.S. citizens with valid Social Security numbers.No one has a disability. They lived in the United States all year but not in a communityproperty state. 10. Which of the following statements is true? A. Jenny is eligible to claim Marie for the EIC even though her filing status is married filing separate…
Florence is employed by Sparkling Drinks Limited and earns a salary of $40,000 per month. Her taxable benefits are: housing accommodation $30,000 per month; company car $65,000 (cost $750,000 six years ago, 60% private use). During the year of assessment 2013 on her building society savings account, Florence earned $1,500 interest gross from which $375 withholding tax was deducted. She also earned $3,000 interest gross on a bank fixed deposit (withholding tax $750). For the period January to December 2013 Florence paid $83,172 by PAYE. Note NIS is 2.5% of total emoluments Income tax threshold is $507,312 Calculate the balance of tax due from Florence to the Inland Revenue Department for the year of assessment 2013
Noah Yobs, who has $75,400 of AGI (solely from wages) before considering rental activities, has $67,860 of losses from a real estate rental activity in which he actively participates. He also actively participates in another real estate rental activity from which he has $37,700 of income. He has other passive activity income of $24,128.a. What amount of rental loss can Noah use to offset active or portfolio income in the current year?$b. Complete Noah's Form 1040 (page 1) for the current year. Use the minus sign to indicate a loss.
1. Jim paid his brother to provide computer services for Jim's business. Jim paid him $14,000. Other firms provide the same services for $5,000. How much of this expenditure is deductible? 2. XYZ landscaping sold a truck during 2021 for $15,000 recognizing a gain of $2,000. What is the adjusted basis of the truck? 3. Bill earned $50,000 from self employment during 2021. How much must he pay in self employment tax? 4. Ed commutes to work every day during 2021. He spent $3,000 in transportation. How much can he deduct for 2021?
Rob Wriggle operates a small plumbing supplies business as a sole proprietor. In 2019, the plumbing business has gross business income of $421,000 and business expenses of $267,000, including wages paid of $58,000. The business sold some land that had been held for investment generating a long-term capital gain of $15,000. The business has $300,000 of qualified business property in 2019. Rob's wife, Marie, has wage income of $250,000. They jointly sold stocks in 2019 and generated a long-term capital gain of $13,000. Rob and Marie have no dependents and in 2019, they take the standard deduction of $24,400. The income threshold for QBI limitations starts at $321,400 for married filing jointly taxpayers. a. What is Rob and Marie's taxable income before the QBI deduction?$407,600 b. What is Rob and Marie's QBI?$154,000 c. What is Rob and Marie's QBI deduction?$29,248 complete Form 8995-A to report Rob’s QBI deduction. 2 Qualified business income from the trade, business,…
Noah Yobs, who has $97,000 of AGI (solely from wages) before considering rental activities, has $87,300 of losses from a real estate rental activity in which he actively participates. He also actively participates in another real estate rental activity from which he has $48,500 of income. He has other passive activity income of $31,040. a. What amount of rental loss can Noah use to offset active or portfolio income in the current year? b. Compute Noah’s AGI on Form 1040 [pages 1 and 2; also complete Schedule 1 (Form 1040)] for the current year. Use the minus sign to indicate a loss. What amounts should go on lines 1, 6, & 7 on page 2 of FORM 1040? What amount s go on lines 17, & 22 on schedule one of FORM 1040?
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An employee is required to use her own automobile for employment duties. She acquired a new car at the beginning of the year for $40000 (including GST and HST of 8 %) and during the year she incurred the following expenses. Gasoline $2200, repairs and maintenance $400, insurance and registration $800, meals while away from the office $420 ($200 relates to out of town travel), parking during employment duties $ 300 and interest on loan to acquire car $3900. During the year, the employee drove 26000 km of which 14000 were for employment duties and the remaining were personal. Compute the personal and employment expenses.