Is this statement True or False?
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A: If one person had started his business as a sole proprietorship or a partnership then the revenue…
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A: Solution:
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A: As per our protocol we provide solution to one question only but as you have asked different…
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A: Principal Place of Business To determine the principal place of business whether individual has one…
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Q: As a tax return preparer for The Fernando Rodriguez Tax & Accounting Service, you have been asked to…
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A: Income=$56,320 standard deduction =$24,000
Q: If Margo and Bruce purchase and operate an ice cream store, for tax purposes they have formed a…
A: Partnership: When two or more person come together and agree to become partners and share the profit…
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A: Optional Standard Deduction (OSD) - It is a maximum deduction of 40% of Gross sales/ gross receipts…
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A: Following are the income brackets applicable for the year 2019:
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A: FICA is the Federal Insurance Contributions Act is what it is called, and it is taken out of every…
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A: Dependent: A dependant is a qualifying individual who entitles a tax-payer to claim certain tax…
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Q: What tax forms are needed for the following example? Tim and Sarah Lawrence are married and filing a…
A: Step 1: Compute the taxable income for Tim and Sarah for the year for 2019.
Q: Jane and Ben are married and usually file a joint return. They live in a separate property state…
A: Section 199A of the Internal Revenue code deals with "Qualified business income deduction."
Q: Clark and his wife, Lois, have both been working full-time jobs as teachers, one making $34720 and…
A: Federal income tax is a system of charging income tax from the taxpayers based on a progressive…
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A: Requirement 1: Compute QBI based on the W–2 Wages/Capital Investment Limit?
Q: Ben and Molly are married and will file jointly. Ben generates $300,000 of qualified business income…
A: Taxable income is the measurement of income which is used to calculate the amount of tax that needs…
Q: Which of the following taxpayers cannot claim deductions from gross income? General…
A: Gross income refers to the income which is earned from the wages, dividends, business income etc. In…
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A: INTRODUCTION: Income tax is a tax paid to the government depending on your earnings (and profit, in…
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A:
Q: Bob and Carol file their tax returns using the married filing jointly status. Their AGI is $132,500.…
A: working notes : NET Tax credit =Tax credit*number of child =2,000*2=4,000
Is this statement True or False?
The tax charged on various forms of legal business organizations varies. The partnership is the legal form of business entity but the entire net income is not charged for the taxation purpose under the Federal taxation system.
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- Jane and Ben are married and usually file a joint return. They live in a separate property state (rather than a community property state). Jane is a partner in a law firm and typically generates income of $162,000. Ben is a grade school teacher with wage income of $75,000. The couple has investment income that is less than their standard deduction. With enactment of the deduction for qualified business income, the couple is wondering if they should continue to file as married filing jointly or instead use the married filing separately status. Why do they wonder this, and what advice would you offer them and why? If each spouse files separately, Jane's income is close to the threshold relevant for , such as the law firm. The use of the married filing jointly filing status will result in QBI deduction. Therefore, from a tax viewpoint, it would probably benefit Jane and Ben to file .If Margo and Bruce purchase and operate an ice cream store, for tax purposes they have formed a partnership. True or False- Required information [The following information applies to the questions displayed below.] Matt and Meg Comer are married and file a joint tax return. They do not have any children. Matt works as a history professor at a local university and earns a salary of $69,100. Meg works part time at the same university. She earns $43,900 a year. The couple does not itemize deductions. Other than salary, the Comers' only other source of income is from the disposition of various capital assets (mostly stocks). (Use the tax rate schedules, Dividends and Capital Gains Tax Rates.) Note: Round your final answers to the nearest whole dollar amount. a. What is the Comers' tax liability for 2023 if they report the following capital gains and losses for the year? Short-term capital gains Short-term capital losses Long-term capital gains Long-term capital losses Total tax liability $ 9,450 (2,450) 15,200 (6,900)
- Julia and Maria are registered domestic partners filing jointly for California tax purposes. Their combined Form 540, line 19, taxable income is $73,721. What is their tax to be entered on line 31 if using the tax table? $4,108 $2,060 $2,578 $2,154 Julia and Maria are registered domestic partners filing jointly for California tax purposes. Their combined Form 540, line 19, taxable income is $73,721. What is their tax to be entered on line 31 if using the tax rate schedule? (round your answer) $3,528 $2,061 $2,398 $2,155Doug and Tammy are not related and do not live together. Doug is employed and earns commission income. Tammy is an independent broker and earns commission income. Both maintain an office in their homes. Which of the following statements is false regarding the tax treatment of their incomes for 2020? (a) Tammy can incur a non-capital loss, but Doug cannot. (b) Tammy and Doug can deduct a portion of their property tax and house insurance (c) Tammy can deduct a portion of her home mortgage interest, but Doug cannot. (d) Tammy and Doug can claim CCA on their computers.What tax forms are needed for the following example? Tim and Sarah Lawrence are married and filing a joint return. Tim's social security number is 123-45-6789, and Sarah's social security number is 111-11-1111. They reside at 100 Olive Lane, Covington, LA 70434. They have two dependent children, Sean and Debra, ages 12 and 16. Tim is a self-employed business person (sole proprietor of an unincorporated business) and Sarah a corporate executive. Tim has the following income and expenses from his business: Gross income $325,000Business Expenses $201.000 Records Related to Sarah's employment show the following:Salary $145,000Unreimbursed Travel (including $200 in meals) $1,600 Other pertinent information for the tax year include the following:Proceeds from the sale of stock acquired July 15, 2018 (cost $12,000) and sold August 1, 2018 for $9,800Proceeds from sale of stock acquired on September 18, 2017 (cost $5,000) and sold on October 5, 2018 for $3,800Wages paid to full-time…
- Sebastian and Sunny are married. They are currently contemplating filing as married filing separately. Under current law, spouses filing separately must A) use the standard deduction if the other spouse uses the itemized deductions or vice versa. B) both use standard deduction. C) both use itemized deductions. D) either both use itemized deductions, or both use standard deduction.Suppose Sam and Cory are married and are deciding whether to use the filing status of Single or of Married filing jointly. Cory has a taxable income of $50,000 and Sam has a taxable income of $100,000. If they both file as Singles, together, how much would they owe in federal income taxes?Lewis, age 26, and Oneida, age 25, are married and will file a joint return. They cannot be claimed as dependents by another taxpayer. Lewis and Oneida have no children or other dependents. Both work and neither are full-time students. Lewis earned wages of $15,400 and Oneida earned wages of $5,600. Lewis and Oneida are U.S. citizens and have valid Social Security numbers. Lewis and Oneida have investment income of $5,000. 4. The maximum amount of investment income that Lewis and Oneida can have to qualify for the Earned Income Tax Credit is $ ____________.
- Pedro Rodríguez Cruz and Mónica Santiago Del Valle, are married under the community property regime and file their income tax return as married filing jointly. Pedro's date of birth is January 1, 1950 and Monica's is February 1, 1955. The couple's address is Urb. Bella Vista, Calle Monte #1, San Juan, PR 00910. Both are citizens of the United States. United States of America, residents of Puerto Rico, have not generated income outside of Puerto Rico, and are not military. During taxable year 2021, they carried out the following activities.Pedro Rodriguez, dba, Medical Equipment & SuppliesPedro, merchant (Salesperson-retail), owns a business on his own (“sole proprietorship”), Medical Equipment & Supplies dedicated to the sale and distribution of medical equipment. The business is located in San Juan. Pedro began operations on January 2, 2012 and works there about 40 hours a week. The result of its operations, under the accrual method and on a tax basis, during 2021 was as…Lewis, age 26, and Oneida, age 25, are married and will file a joint return. They cannot be claimed as dependents by another taxpayer. Lewis and Oneida have no children or other dependents. Both work and neither are full-time students. Lewis earned wages of $10,400 and Oneida earned wages of $5,600. Lewis and Oneida are U.S. citizens and have valid Social Security numbers. Lewis and Oneida have investment income of $5,000. 3. Lewis and Oneida are eligible to claim the Earned Income Tax Credit (EITC) without a qualifying child. Sebastian and Ashley Miller are married and always file Married Filing Jointly. Sebastian earned $32,000 in wages and Ashley earned $24,000 in wages. The Millers paid all the cost of keeping up a home and provided all the support for their two children, Laura and Timothy, who lived with them all year. Laura is 14 years old and Timothy turned 17 in November 2022. Sebastian and Ashley did not have enough deductions to itemize,…Matt and Meg Comer are married and file a joint tax return. They do not have any children. Matt works as a history professor at a local university and earns a salary of $68,900. Meg works part time at the same university. She earns $44,100 a year. The couple does not itemize deductions. Other than salary, the Comers' only other source of income is from the disposition of various capital assets (mostly stocks). (Use the tax rate schedules,Dividends and Capital Gains Tax Rates.) a. What is the Comers' tax liability for 2023 if they report the following capital gains and losses for the year? Short-term capital gains $ 9,550 Short-term capital losses (2,550) Long-term capital gains 15,200 Long-term capital losses (7,100)