Income Tax Fundamentals 2020
38th Edition
ISBN: 9780357391129
Author: WHITTENBURG
Publisher: Cengage
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Question
Chapter 4, Problem 26MCQ
To determine
Concept Introduction:
Gross income is the starting point for calculating a taxpayer’s liability. It includes all the income from any sources unless there is an exception in the law. In gross income, non-cash items are included at the fair market value. These incomes are excluded from the
To identify: The businesses that unavailable to the qualified business income deduction.
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Students have asked these similar questions
Which of the following taxpayers may claim a deduction for qualified business income?
a. A driver for Uber or Lyft.
b. A vetenarian operating as an S corporation. In addition to veterinary services, revenues are also derived from the sale of pet food and supplies and from the boarding of animals.
c. A CPA operating as an LLC taxed as a sole proprietorship. The CPA is single and has taxable income of $150,000.
d. Same as part(c), except the CPA has taxable income of $200,000
e. A real estate salesperson.
f. A pet sitter/ dog walker.
g. A sole proprietor software developer.
h. An individual wage earner who derives $60,000 of rental income from a duplex she owns.
Which one of the following costs is most likely NOT fully deductible?
Group of answer choices
Jose, a local business owner, pays $30,000 in Self-Employment taxes.
Sandra owns a mini golf course. She pays her employer portion of payroll taxes because of her employees, which totals to $12,000.
Travis owns a CPA firm and pays his son Joe as an associate. Joe is a CPA and is paid the same salary as the other associates.
X-Corp writes off a $12,000 business debt owed by Sam because he has not responded to their numerous requests for payment.
Ferran operates a boutique yarn store from their own. The store had accountingincome after tax of $50,000. Already deducted from that number are depreciation of$5,000, financing fees of $2,500, and salaries to arm's length employees of $10,000.CCA would be $4,000.Calculate Ferran's taxable income based on what you know about them?
Chapter 4 Solutions
Income Tax Fundamentals 2020
Ch. 4 - All of the following assets are capital assets,...Ch. 4 - Which of the following is a capital asset? Account...Ch. 4 - Yasmeen purchases stock on January 30,2018 . If...Ch. 4 - Vijay sells land and receives $5,000 cash, a...Ch. 4 - Prob. 5MCQCh. 4 - In 2019, what is the top tax rate for individual...Ch. 4 - In November 2019, Ben and Betty (married, filing...Ch. 4 - Prob. 8MCQCh. 4 - In 2019, Tim, a single taxpayer, has ordinary...Ch. 4 - Prob. 10MCQ
Ch. 4 - Prob. 11MCQCh. 4 - Prob. 12MCQCh. 4 - Kevin purchased a house 20 years ago for $100,000...Ch. 4 - Gene, a single taxpayer, purchased a house 18...Ch. 4 - Prob. 15MCQCh. 4 - John owns a second home in Palm Springs, CA....Ch. 4 - Helen, a single taxpayer, has modified adjusted...Ch. 4 - Prob. 18MCQCh. 4 - Prob. 19MCQCh. 4 - Prob. 20MCQCh. 4 - Prob. 21MCQCh. 4 - Prob. 22MCQCh. 4 - Prob. 23MCQCh. 4 - Prob. 24MCQCh. 4 - Jim has a net operating loss in 2019. If he does...Ch. 4 - Prob. 26MCQCh. 4 - Prob. 27MCQCh. 4 - In 2019, Tracy generates a $10,000 loss from an...Ch. 4 - Prob. 1PCh. 4 - Prob. 2PCh. 4 - Prob. 4PCh. 4 - Prob. 5PCh. 4 - In 2019, Michael has net short-term capital losses...Ch. 4 - Prob. 7PCh. 4 - Prob. 8PCh. 4 - Prob. 9PCh. 4 - Prob. 10PCh. 4 - Walter, a single taxpayer, purchased a limited...Ch. 4 - Tyler, a single taxpayer, generates a net...Ch. 4 - Julie, a single taxpayer, has completed her 2019...Ch. 4 - Prob. 15P
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