Ralph is employed by Home Depot. He drives one of the company's delivery vans, delivering items to job sites for customers. As one of the job's perks, he gets to take the van home in the evenings. In 2022, Ralph drove the van 20,000 miles, of which, 2,000 were personal miles. The van has an annual lease value of $3,000. What is the personal use value that is included in Ralph's taxable wages, subject to all payroll taxes? Group of answer choices $300 $600 $200 $2,000

Ralph is employed by Home Depot. He drives one of the company's delivery vans, delivering items to job sites for customers. As one of the job's perks, he gets to take the van home in the evenings. In 2022, Ralph drove the van 20,000 miles, of which, 2,000 were personal miles. The van has an annual lease value of $3,000. What is the personal use value that is included in Ralph's taxable wages, subject to all payroll taxes? Group of answer choices $300 $600 $200 $2,000

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter2: Income Tax Concepts

Section: Chapter Questions

Problem 41P: Chelsea, who is single, purchases land for investment purposes in 2014 at a cost of 22,000. In 2019,...

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Darrell is an employee of Whitneys. During the current year, Darrells salary is 136,000. Whitneys net self-employment income is also 136,000. Calculate the Social Security and self-employment taxes paid by Darrell and Whitney. Write a letter to Whitney in which you state how much she will have to pay in Social Security and self-employment taxes and why she owes those amounts.
Chelsea, who is single, purchases land for investment purposes in 2014 at a cost of 22,000. In 2019, she sells the land for 38,000. Chelseas taxable income without considering the land sale is 100,000. What is the effect of the sale of the land on her taxable income, and what is her tax liability?
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Hassad owns a rental house on Lake Tahoe. He uses a real estate firm to screen prospective renters, but he makes the final decision on all rentals. He also is responsible for setting the weekly rental price of the house. During the current year, the house rents for 1,500 per week. Hassad pays a commission of 150 and a cleaning fee of 75 for each week the property is rented. During the current year, he incurs the following additional expenses related to the property: a. What is the proper tax treatment if Hassad rents the house for only 1 week (7 days) and uses it 50 days for personal purposes? b. What is the proper tax treatment if Hassad rents the house for 8 weeks (56 days) and uses it 44 days for personal purposes? c. What is the proper tax treatment if Hassad rents the house for 25 weeks (175 days) and uses it 15 days for personal purposes?
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In 2023, Ms. Gesner's employer provides her with an automobile for 11 months of the year. The automobile cost $57,560, which included HST. She drives it a total of 61,600 kilometres, 16,400 of which are for personal purposes and 45,200 for employment purposes. The employer pays all maintenance expenses, which in 2023 total $8,950 for the year. What is the minimum taxable benefit for the use of the automobile for 2023? (Round your answer to the nearest whole dollar.) O A. $17,153 B. $17,767 O C. $16,738 D. $18,075
Miranda is employed at the Sweet Tooth Bakery. She drives an employer-provided van, transporting cakes and other sweets to customers throughout the city. She is permitted to take the van home in the evenings. In 2022, Miranda drove the truck 15,000 miles, of which 3,000, or 20%, were personal miles. The van has an annual lease value of $3,800. What is the amount included in Miranda’s taxable wages, subject to all payroll taxes?
Tyson owns a condominium near Laguna Beach, California. During the year, Tyson rented the condo for 100 days receiving $20,000 of gross rent. He personally used the condo for 60 days. In 2020, he incurs the expenses listed below in connection with his condo. Tyson is deducting $4,000 of state and local income taxes (this does not include any real estate property taxes he is entitled to) as itemized deductions. What is Tyson's net rental income assuming (a) he uses the Tax Court method of allocating expenses and (b) he uses the IRS method of allocating expenses. How much is his itemized deduction for real estate property taxes under cach method. Mortgage Interest Property taxes Repairs Utilities $9,700 5,650 3,250 2,160 3,125 1,280 11,560 Maintenance Advertising Depreciation Net rental income- IRS Method Net Rental Income- Tax court Method Itemized deduction for Real Estate Taxes - IRS Method Itemized Deduction for Real Estate Taxes Tax court Method Show your work for any potential…
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