Rachael is a self-employed accountant. During the year, Rachael incurs the following unreimbursed expenses:(Click the icon to view the expenses.)RequirementIdentify which of these expenses are deductible and the amount that is deductible by Rachael. Indicate whether they are deductible for or from AGI. (Enter a "0" in the Amount of deduction column if an item is not deductible. Ignore any AGI limitations for the purposes ofthis problem.)ItemAmountsDeductible?Amount of deductionData tableTravel to client locations$1,100Subscriptions to professional journals180Taking potential clients to lunch300Photocopying75ItemAmountTravel to client locations$1,100Subscriptions to professional journals180Taking potential clients to lunch30075PhotocopyingTotal1,655PrintDone×

To fill in the table:"Travel to client locations" is deductible for the full amount of…

Answered: Rachael is a self-employed accountant.…

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter16: Accounting Periods And Methods

Section: Chapter Questions

Problem 10DQ

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For or From AGI Deductions. Roberta is an accountant employed by a local firm. Duringthe year, Roberta incurs the following unreimbursed expenses:Travel to client locations $750Subscriptions to professional journals 215Taking potential clients to lunch 400Photocopying 60a. Identify which of these expenses are deductible and the amount that is deductible.Indicate whether they are deductible for or from AGI.b. Would the answers to Part a change if the accounting firm reimburses Roberta forthese expenses?c. Assume all of the same facts as in Part a, except that Roberta is self-employed. Identifywhich of the expenses are deductible, and indicate whether they are deductions for or from AGI.
In each of the following independent cases, indicate the amount (1) deductible for AGI, (2) deductible from AGI, and (3) deductible neither for nor from AGI before considering income limitations or the standard deduction. (Leave no answer blank. Enter zero if applicable.) a. Fran spent $182 for uniforms for use on her job. Her employer reimbursed her for $116 of this amount under an accountable plan (and did not report the reimbursement as wages). Deductible for AGI? Deductible from AGI? Not deductible? b. Timothy, a plumber employed by ACE Plumbing, spent $127 for small tools to be used on his job, but he was not reimbursed by ACE. Deductible for AGI? Deductible from AGI? Not deductible? c. Jake is a perfume salesperson. Because of his high pay, he receives no allowance or reimbursement from his employer for advertising expenses even though his position requires him to advertise frequently. During the year, he spent $4,250 on legitimate business advertisements. Deductible…
In January of year 0, Justin paid $9,400 for an insurance policy that covers his business property for accidents and casualties. Justin is a calendar-year taxpayer who uses the cash method of accounting. What amount of the insurance premium may Justin deduct in year 0 in each of the following alternative scenarios? Note: Leave no answers blank. Enter zero if applicable. a. The policy covers the business property from April 1 of year 0 through March 31 of year 1. b. The policy begins on February 1 of year 1 and extends through January 31 of year 2. c. Justin pays $10,600 for a 24-month policy that covers the business from April 1, year 0, through March 31, year 2. Note: Do not round intermediate calculations. d. Instead of paying an insurance premium, Justin pays $9,400 to rent his business property from April 1 of year 0 through March 31 of year 1.
Alexa owns a condominium near Cocoa Beach in Florida. In 2023, she incurs the following expenses in connection with her condo: Insurance $ 2, 050 Mortgage interest 7, 450 Property taxes 4, 200 Repairs & maintenance 650 Utilities 4, 650 Depreciation 23, 700 During the year, Alexa rented out the condo for 137 days. 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 137 days, Alexa uses the condo for 8 days of personal use. Also assume that Alexa receives $47, 750 of gross rental receipts, her itemized deductions exceed the standard deduction before considering expenses associated with the condo, and 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
Subject: Accounting
Paul is self-employed as a dentist. He practices under the name "Paul J. Vance, DDS." Paul's gross receipts during the year were $111,000. He uses the cash method of accounting. His business expenses are $68,890. Assume the QBI amount is net of the self-employment tax deduction. What is he qualified business income deduction for 2020?
Bennett is a single individual and received a salary of $28,000 before he retired in October of this year. After he retired, he received Social Security benefits of $4,000 during the year. Read the requirements. Requirement a. What amount, if any, of the Social Security benefits are taxable for the year? Begin by computing the provisional income. Only select items that are applicable to Bennett.(Leave unused cells blank, do not select a label or enter a zero.) Adjusted gross income (excluding Social Security benefits) $28,000 Plus: 50% of Social Security benefits 2,000 Provisional income $30,000 The taxable portion of the Social Security benefits is . Requirements a. What amount, if any, of the Social Security benefits are taxable for the year? b. Would the answer be different if Bennett also had $1,500 of tax-exempt interest? c. What if he had had $6,400of…
Due to a change in her living situation, Tahira Bastianich, a single taxpayer, had to repay social security benefits that she received and included in her gross income in a prior year. In 2021, she repaid more than she received in benefits. In early 2022, she received the following Form SSA-1099 reporting information about the amount of benefits paid as well as the amount of benefits repaid during the year.Assuming general rules and circumstances, choose the statement that best describes how Tahira should report this repayment on her 2021 return. 2021 SSA-1099 form data: Box 3 26,400.00 Benifits paid in 2021 Box 4 31,200.00 Benifits repaid in 2021 Box 5 -4,800.00 Net Benifits for 2021 A) She may deduct the excess repayment amount shown in Box 5 in the section for "Other Itemized Deductions" on Schedule A, indicating that this is a deduction for repayment of amounts under a claim of right OR she may use the amount to figure a refundable credit, whichever is most…
Required information [The following information applies to the questions displayed below.] In January of year 0, Justin paid $8,800 for an insurance policy that covers his business property for accidents and casualties. Justin is a calendar-year taxpayer who uses the cash method of accounting. What amount of the insurance premium may Justin deduct in year O in each of the following alternative scenarios? Note: Leave no answers blank. Enter zero if applicable. d. Instead of paying an insurance premium, Justin pays $8,800 to rent his business property from April 1 of year 0 throug March 31 of year 1. Deductible amount
Determine the amount of taxable income that should be reported by a cash-basis taxpayer in 2022 in each of the following independent cases: Required: a. A taxpayer completes $700 of accounting services in December 2022 for a client who pays for the accounting work in January 2023. b. A taxpayer is in the business of renting computers on a short-term basis. On December 1, 2022, she rents a computer for a $260 rental fee and receives a $650 deposit. The customer returns the computer and is refunded the deposit on December 20, 2022. c. Same facts as (b) except that the computer is returned on January 5, 2023. d. On December 18, 2022, a landlord rents an apartment for $625 per month and collects the first and last months' rent up front. It is customary that tenants apply the security deposit to their last month's rent upon moving out. e. An accountant agrees to perform $395 of tax services for an auto mechanic who has agreed to perform repairs on the car of the accountant's wife. The…
1. Deductible transportation expenses: a.Do not include the normal costs of commuting. b.Do not include daily expenses for transportation between the taxpayer's home and temporary work locations if the taxpayer has a regular place of business. c.Include only costs incurred while away from home. d.Include meals and lodging. 2. Barry is a self-employed attorney who travels to New York on a business trip during 2021. Barry's expenses were as follows: Airfare $550 Taxis 40 Restaurant meals 150 Lodging 350 How much may Barry deduct as travel expenses for the trip? a.$0 b.$1,015 c.$940 d.$1,090 e.None of these choices are correct. 3. Which of the following is deductible as dues, subscriptions, or publications? a.Subscription to the "Journal of Taxation" for a tax attorney b.Dues to a health club for a doctor c.Dues to the drama club for a student d.Subscription to "Vogue" magazine for a corporate president e.None of these choices are correct.
Milt, a self-employed attorney, incurs the following expenses in 2019: (Click the icon to view the expenses.) Which of the expenditures listed above (if any) are deductible in 2019 by Milt? (Complete all input fields. Enter a "0" if an expense is not deductible.) Business lunches for clients and prospective clients Entertainment of professional associates in his home (immediately following business meetings) Country club dues (the club is used exclusively for business) Total amount deductible in 2019 JUU Data Table Business lunches for clients and prospective clients Entertainment of professional associates in his home (immediately following business meetings) Country club dues (the club is used exclusively for business) Total Print Done $ 4,000 2,000 2,500 8,500

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