Ricardo, who is self-employed, uses his automobile 85% for business and during 2020 drove a total of 32,200 business miles. Information regarding his car expenses is listed below. Business parking $345 Auto insurance 2,800 Auto club dues (includes towing service) 275 Toll road charges (business-related) 205 Oil changes and engine tune-ups 180 Repairs 1,890 Depreciation allowable 3,600 Fines for traffic violations (incurred during business use) 95 Gasoline purchases 4,125 What is Ricardo's deduction in 2020 for the use of his car if he uses: If required, round your final answers to the nearest dollar. a. The actual cost method? 11,407 x b. The automatic mileage method? 17,227 x
Q: Faisal has insured his vehicle with AXA insurance company. Throughout the year he experiences a loss…
A: First loss = 2011 Second loss = 1404 Third loss = 2812 Straight deductible = 384, which is the…
Q: Faisal has insured his vehicle with AXA insurance company. Throughout the year he experiences a loss…
A: Loss in January = 1154 Loss in May = 1255 Loss in December = 1292 Straight Deductible = 824
Q: a. Rex uses the automatic mileage method. Compute his basis adjustments for depreciation for each…
A:
Q: On July 1, 2017, Brent purchases a new automobile for $49,000. He uses the car 88% for business and…
A: As per our protocol we provide solution to the one question only or the first three sub-parts only…
Q: $1,200 of alimony payments each month from her former husband (divorced in 2016). Reba also rents…
A: Taxable income refers to the income or profit earned by an individual or an entity in a desired…
Q: Alex, single, earns wags of $42,000 in 2021. He also conducts an activity that produces the…
A: Taxable income is a concept that can be easily derived from its name, tax on income earned. Tax is…
Q: Paul is self-employed as a dentist. He practices under the name "Paul J. Vance, DDS." Paul's gross…
A: Calculation of Depreciation for new furniture =5,000 x 14.29%=$714.5 Calculation of Depreciation on…
Q: Faisal has insured his vehicle with AXA insurance company. Throughout the year he experiences a loss…
A: Vehicle insurance protects drivers and passengers in automobiles, trucks, motorcycles, and other…
Q: Jonathan placed his new car in service on January 1 of the current year. He drove it 15,000 miles in…
A: As per Federal income tax if expense are incurred partly for business and partly for Personal…
Q: On July 1, 2016, Rex purchases a new automobile for $43,000. He uses the car 84% for business and…
A: Solution: Since Part A seems to be incomplete because the rate per mile is not given and should be…
Q: 2. June uses her personal car for work as an employee. For the year, June drove 5,000 business miles…
A: Actual expense method is defined as the procedure used for calculating and claiming the total…
Q: Mary Smith earned her four-year degree and is in her first year of consulting for a law firm. Her…
A: Payroll It is important to prepare the payroll expenses of the employees and make the statutory…
Q: In 2020, Britt drove her automobile 16,200 miles for business. She incurred $900 in gas expenses and…
A:
Q: Joye started her home business in 2020 and the results of her operations are given below. Gross…
A: Schedule C is used for business taxes. This is generally prepared as part of the personal tax…
Q: In July of this year, Stephen started a proprietorship called ECR. ECR uses the cash method of…
A:
Q: Jackson, a self-employed taxpayer, uses his automobile 90% for business and during 2019 drove a…
A: a. Deduction using the Actual cost method = Business parking + Toll road charges (business-related)…
Q: Art is a self-employed installer of home entertainment systems, and he drives his car frequently to…
A: Actual cost method: Asset can be used for office purpose and personal use. Consider the cost only up…
Q: Paul is a self-employed investment adviser who uses his automobile for business. Paul drove his…
A: Answer a: Paul's transportation deduction based on the standard mileage method is: =20,000…
Q: To support herself while attending school, Daun Deloch sold stereo systems to other students. During…
A: Answer: Income Statement Revenue from operations Sales from stereo…
Q: John has a rental property that has rental income of $22,000 and operating expenses of Mortgage…
A: Income tax: The fee charged by the government of the country on the taxable income of the citizens…
Q: On July 1, 2017, Brent purchases a new automobile for $37,000. He uses the car 92% for business and…
A: a). Calculation of basis adjustment for depreciation of each year. Year Miles Rate per miles…
Q: June uses her personal car for work as an employee. For the year, June drove 5,000 business miles…
A: In the actual method expenses related to the business use of a car are expensed based on the…
Q: . Art drove his car 15,000 miles for business purposes and 20,000 miles in total. His actual…
A: Art's deductible auto expense for the year is $7,500
Q: In 2020, Mary and John Williams who are both over 65, married and file a joint return earned $29,408…
A: In Schedule A, Form 1040, deduction of only that portion of medical expense in available, which…
Q: Curt is self-employed as a real estate salesman and drives his car frequently to take clients to see…
A: The expenses that can be claimed or allowed in income tax are only up to the use of assets for…
Q: Breanna Vail is a self-employed accountant who has one less-than-half-time employee. During 2019,…
A: Introduction Schedule C is tax form filed by sole proprietors, to show profit and loss from…
Q: Faisal has insured his vehicle with AXA insurance company. Throughout the year he experiences a loss…
A: Loss in January = 1577 Loss in May = 1284 Loss in December = 1102 Aggregate Deductible = 2574
Q: Barney is self-employed and drove his vehicle 15,000 miles in 2019. 10,000 miles were for business.…
A: We have the following information: Total Distance: 15,000 miles Distance for Business: 10,000 miles…
Q: Tyler, a self-employed taxpayer, travels from Denver to Miami primarily on business. He spends five…
A: Cost of meals and beverages incurred for business purposes will be deductible 100% for expense paid…
Q: Cynthia is an electrician, age 29, and single. • Cynthia has investment income and has a…
A: SOLUTION SHORT TERM CAPITAL GAIN IS A PROFIT REALIZED FROM SALE ,TRANSFER OR OTHER DISPOSITION OF…
Q: Seong Gi-hun started his cleaning services business on November 1, 2020, with a P240,000 investment…
A: solution Given On November 1 2020 Owners equity =P 240,000 Bank loan (liability ) =P…
Q: Mr. Brown's employer provides him with an automobile for his personal use, and pays all operating…
A: Taxable benefit is referred to as the amount of perquisite which is provided by the employer to the…
Q: To support herself while attending school, Daun Deloch sold stereo systems to other students. During…
A: The estimated warranty expense is recorded as warranty liability on the basis of past experience for…
Q: Marc Lusebrink, sole proprietor of Oak Company, bought a used automobile and drove it 13,120 miles…
A: Calculate Marc's transportation expense deduction for the year under Actual cost method.
Q: Frank purchased a vehicle for business and personal use. In 2020, he used the vehicle 70% for…
A: Given that: Business miles incurred = 10600 miles Interest = $1800 Property tax = $500
Q: Ray owns a Chocolate store as a sole proprietor. In 2021, sales revenue equaled $100,000. The…
A: Ray's adjusted gross income for 2021 Particulars Amount Revenue from Business $100,000…
Q: Marvin had the following transactions: Salary $50,000 Compensation of body injury due to…
A: Adjusted gross total income is calculated by subtracting the deductions for AGI or specified to be…
Q: Jack is a lawyer who is a member at Ocean Spray Country Club where he spends $7,200 in dues, $4,000…
A: Formula: Total expense = Business meals + Rotary club fees Sum of both business meals and rotary…
Q: Richie is an unmarried law student at State University Law School, a qualified educational…
A: If expenses are incurred for qualified education expenses for self, spouse or dependants, a…
Q: Rocky repairs TV sets in the basement of his personal residence. Rocky uses 450 square feet (20%)…
A: Deduction: A deduction is an expense that can be subtracted from an individual or married couple's…
Q: Calculate Chee’s taxable income for the year. If Chee has any options, choose the method that…
A:
Q: on uses his automobile 80% for his business that he operates as a sole proprietorship. He drove a…
A: Step 1 Under automatic method, you cannot deduct actual car operating expenses. That means you can’t…
Q: Yolanda is a cash basis taxpayer with the following transactions during the year: Cash…
A: Business income:The income that is realized from the result of business activity is referred to as…
Q: Ariana is a self-employed Instacart driver who works out of their home. Ariana does not have a…
A: Here while calculating the deduction in the vehicle by using standard mileage rate and actual cost…
Q: Calculate the Gross Income, Adjusted Gross Income, and Taxable Income
A:
Q: Ricardo, who is self-employed, uses his automobile 85% for business and during 2020 drove a total of…
A: Formula: Deductions = Standard mileage rate x Number of miles driven. Multiplying Standard mileage…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- Problem 9-28 (LO. 2) On July 1, 2017, Brent purchases a new automobile for $40,000. He uses the car 80% for business and drives the car as follows: 8,000 miles in 2017, 19,000 miles in 2018, 20,000 miles in 2019, and 15,000 miles in 2020. Determine Brent's basis in the business portion of the auto as of January 1, 2021, under the following assumptions: If required, round answers to the nearest dollar. a. Brent uses the automatic mileage method. Compute his basis adjustments for depreciation for each year. Click here to access the basis adjustment table. 2017: $ 2018: $ 2019: $ 2020: $ Brent's adjusted basis in the auto on January 1, 2021, is $ Feedback b. Brent uses the actual cost method. [Assume that no § 179 expensing is claimed and that 200% declining-balance cost recovery with the half-year convention is used. The recovery limitation for an auto placed in service in 2017 is as follows: $3,160 (first year), $5,100 (second year), $3,050 (third year), and $1,875 (fourth year).]…Exercise 15-21 (Algorithmic) (LO. 3, 4) In 2021, Henry Jones (Social Security number 123-45-6789) works as a freelance driver, finding customers using various platforms like Uber and Grubhub. He is single and has no other sources of income. In 2021, Henry's qualified business income from driving is $116,200. Assume Henry takes the standard deduction of $12,550. Click here to access the 2021 individual tax rate schedule to use for this problem. Assume the QBI amount is net of the self-employment tax deduction. a. Compute Henry's QBI deduction and his tax liability for 2021. QBI deduction: $ 20,730 Tax liability (round to the nearest dollar): XTransportation (LO 3.3) Teresa is a self-employed civil engineer who uses her automobile for business. Teresa drove her automobile a total of 11,965 miles during 2020, of which 80% was business mileage. The actual cost of gasoline, oil, depreciation, repairs, and insurance for the year was $6,440. Teresa is eligible to use the actual or standard method. If required, round your answers to the nearest dollar. a. How much is Teresa's transportation deduction based on the standard mileage method?$fill in the blank f77e440a8016001_1 b. How much is Teresa's transportation deduction based on the actual cost method?$fill in the blank 4eb51bfe9039fc8_1 c. Which method should Teresa use to calculate her transportation deduction? Since the method yields the larger deduction, Teresa should use the method to determine her deduction.
- O e. OMR156.75 Clear my choice non 6 et ered Ali is a student at the University. He recently purchased a car for OMR5,000 to use it for going to the University. Ali also expects that other friends might ask for transportation from him. He expects a total monthly revenue of OMR60. He expects fuel cost to be OMR30 per month. One of Ali's friends is a taxi driver. He offered Ali to take him to University for a monthly fee of OMR10. Because he does not have to drive, Ali believes that he can perform online work ed out of g question that would earn him a monthly revenue of OMR10. What is the differential revenue in this scenario? Select one: O a. OMR20 O b. OMR40 O c. OMR10 O d. OMR30 O e. OMR50 ious page Next page 18Required information Problem 6-55 (LO 6-3) (Algo) [The following information applies to the questions displayed below.) Stephanie is 12 years old and often assists neighbors on weekends by babysitting their children. Calculate the 2022 standard deduction Stephanie will claim under the following independent circumstances (assume that Stephanie's parents will claim her as a dependent). Problem 6-55 Part-b (Algo) b. Stephanie reported $2,625 of earnings from her babysitting. Standard deductionExercise 9-12 (Algorithmic) (LO. 2) Lara uses the standard mileage method for determining auto expenses. During 2023, she used her car as follows: 23,200 miles for business, 4,640 miles for personal use, 6,960 miles for a move to a new job, 2,320 miles for charitable purposes, and 1,160 miles for medical visits. Presuming that all the mileage expenses are allowable (i.e., not subject to percentage limitations), what is Lara's deduction for: If required, round your answers to the nearest dollar. a. Business? $15,198 b. Charitable? 325 c. Medical? 255
- Problem 6-50 (LO. 1, 3) Chee, single, age 40, had the following income and expenses during 2021: Income Salary $43,000 Rental of vacation home (rented 60 days, used personally 60 days, vacant 245 days) 4,000 Municipal bond interest 2,000 Dividend from General Electric 400 Expenses Interest on home mortgage 8,400 Interest on vacation home 4,758 Interest on loan used to buy municipal bonds 3,100 Property tax on home 2,200 Property tax on vacation home 1,098 State income tax 3,300 State sales tax 900 Charitable contributions 1,100 Tax return preparation fee 300 Utilities and maintenance on vacation home 2,600 Depreciation on rental portion of vacation home 3,500 Calculate Chee's net income from the vacation home, itemized deductions and taxable income for the year. If Chee has any options, choose the method that maximizes his deductions. In your computations, round any fractions to four decimal places. Then, round any amounts to the…TB ES Qu. 05-108 (Algo) Juan works as a landscaper for local businesses... Juan works as a landscaper for local businesses on weekends, and he often provides services in exchange for property. This year Juan provided lawn-mowing services in exchange for $1,910 of car repair services, $5,450 of groceries, and a certificate of deposit (CD) for $3,900. The CD matures next year with interest. Finally, Juan received a gift card that can only be applied for $1,230 of clothing at a local mall. Juan has only applied the gift card to purchase $245 of clothing. Compute Juan's gross income, assuming that he uses the cash basis of accounting.Required information [The following information applies to the questions displayed below.] Michelle operates several food trucks. Indicate the amount (if any) that she can deduct as an ordinary and necessary business deduction in each of the following situations. (Leave no answers blank. Enter zero if applicable.) a. Michelle moves her food truck between various locations on a daily rotation. Last week, Michelle was stopped for speeding. She paid a fine of $125 for speeding, including $80 for legal advice in connection with the ticket. Deductible amount
- Problem 3-37 (Algorithmic) (LO. 3, 7) Taylor, age 16, is claimed as a dependent by her parents. For 2023, she has the following income: $5,400 wages from a summer job, $1,820 interest from a money market account, and $1,875 interest from City of Chicago bonds. If required, round your answers to the nearest dollar. If required, round your answers to the nearest dollar. If an amount is zero, enter "0". Click here to access the 2023 tax rate schedule. a. Taylor's standard deduction for 2023 is $ Taylor's taxable income for 2023 is $ b. Compute Taylor's "net unearned income" for the purpose of the kiddie tax. Compute Taylor's tax liability. [Her parents file a joint return and have taxable income of $135,000 (no dividends or capital gains).]Required information [The following information applies to the questions displayed below] Natalie owns a condominium near Cocoa Beach in Florida. In 2021, she incurs the following expenses in connection with her condo: Insurance $ 1,060 Advertising expense Mortgage interest Property taxes 640 4,500 1,290 1,200 5) Repairs & maintenance Utilities Depreciation 12,300 During the year, Natalie rented out the condo for 89 days, receiving $14,000 of gross income. She personally used the condo for 38 days during her vacation. Natalie's itemized deduction for nonrental taxes is less than $10,000 by more than the property taxes allocated to the rental use of the property. Assume Natalie uses the Tax Court method of allocating expenses to rental use of the property. Assume 365 days in the current year. (Do not round apportionment ratio. Round all other dollar values to the nearest whole dollar amount.) a. What is the total amount of itemized deductions Natalie may deduct in the current year…13. In April 2016, Ginny was assigned to a job in the next county for the day. She drove 75 miles each way to the job, paid S4 in tolls, $7 for parking and $9 for lunch. What is her allowable business expense deduction? a. $101 b. $92 c. $85 d. $81