Required information [The following information applies to the questions displayed below.] 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. Note: Leave no answer blank. Enter zero if applicable. b. Tyler paid $85 for minor repairs to the fence at a rental house he owned. Deductible for AGI Deductible from AGI Not deductible

Required information [The following information applies to the questions displayed below.] 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. Note: Leave no answer blank. Enter zero if applicable. b. Tyler paid $85 for minor repairs to the fence at a rental house he owned. Deductible for AGI Deductible from AGI Not deductible

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter3: Tax Formula And Tax Determination : An Overview Of Property Transactions

Section: Chapter Questions

Problem 30P

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Please answer all parts (a, b, c, and d) Indicate the amount (if any) that Josh can deduct as an ordinary and necessary business deduction in each of the following situations. (Leave no answers blank. Enter zero if applicable.) Problem 9-47 Part-a (Algo)a. Josh borrowed $83,000 from First State Bank using his business assets as collateral. He used the money to buy City of Blanksville bonds. Over the course of a year, Josh paid interest of $12,000 on the borrowed funds, but he received $11,600 of interest on the bonds. Deductible amount__ b. Josh purchased a piece of land for $85,500 in order to get a location to expand his business. He also paid $7,000 to construct a new driveway for access to the property. Deductible amount__ c. This year Josh paid $18,200 to employ the mayor’s son in the business. Josh would typically pay an employee with these responsibilities about $15,400, but the mayor assured Josh that after his son was hired, some city business would be coming his way.…
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
! Required information [The following information applies to the questions displayed below.] In January of year 0, Justin paid $5,400 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 O in each of the following alternative scenarios? (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. Deductible amount
Required information Skip to question [The following information applies to the questions displayed below.] Indicate the amount (if any) that Josh can deduct as an ordinary and necessary business deduction in each of the following situations. Note: Leave no answers blank. Enter zero if applicable. a. Josh borrowed $74,000 from First State Bank using his business assets as collateral. He used the money to buy City of Blanksville bonds. Over the course of a year, Josh paid interest of $9,900 on the borrowed funds, but he received $9,000 of interest on the bonds. b. Josh purchased a piece of land for $91,000 in order to get a location to expand his business. He also paid $8,500 to construct a new driveway for access to the property c. This year Josh paid $24,600 to employ the mayor's son in the business. Josh would typically pay an employee with these responsibilities about $22,900, but the mayor assured Josh that after his son was hired, some city business would be coming his way. d.…
! Required information [The following information applies to the questions displayed below.] Alexa owns a condominium near Cocoa Beach in Florida. This year, she incurs the following expenses in connection with her condo: Insurance Mortgage interest Property taxes Repairs & maintenance Utilities Depreciation $ 2,050 7,450 4,200 650 4,650 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 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…
Required information [The following information applies to the questions displayed below.] Rebecca is a calendar-year taxpayer who operates a business. She made the following business-related expenditures in December of this year. Indicate the amount of these payments that she may deduct this year under both the cash method of accounting and the accrual method of accounting. (Leave no answers blank. Enter zero if applicable.) d. $1,500 for interest on a short-term bank loan relating to the period from November 1 of this year, through March 31 of next year. Deductible Amount Cash method Accrual method $ 0
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
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During the current year, Mr. and Mrs. West paid the following taxes: Property taxes on residence $1,900 Special assessment for installation of a sewer system in their neighborhood $1,000 State personal property tax on their automobile (based on value) $400 Property taxes on land held for long-term appreciation $600 What amount can the Wests deduct as property taxes in calculating itemized deductions for the current year? a.$0 b.$2,300 c.$2,900 d.$1,900 e.None of these choices are correct.
Suppose that in the past year your only deductible expenses were $2000 in mortgage interest and $5000 in charitable contributions. If you are entitled to a standard deduction of $6100, then the maximum total deduction you can claim is how much? Choose the correct answer below. O A. $6100, because that is the sum of the deductible expenses O B. $6100, because that is the standard deduction OC. $7000, because that is the sum of the deductible expenses O D. $13,100, because that is the sum of the deductible expenses and the standard deduction O E. S7000, because that is the product of the deductible expenses O F. $13,100, because that is the product of the deductible expenses and the standard deduction
A person who owes total federal income taxes of $4,420 but had total withholdings of $3,980 would: Multiple Choice make a payment of $440. receive a refund of $4.420. make a payment of $4,420. receive a refund of $440. receive a refund of $3.980.