Concepts in Federal Taxation 2019 (with Intuit ProConnect Tax Online 2017 and RIA Checkpoint 1 term (6 months) Printed Access Card)
26th Edition
ISBN: 9781337702621
Author: Kevin E. Murphy, Mark Higgins
Publisher: Cengage Learning
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Chapter 2, Problem 81TPC
To determine
Prepare a three-year projection of the income of the business and the total taxes for a
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Betty operates a beauty salon as a sole proprietorship. Betty also owns and rents an apartment building. In 2021, Betty had the following income and expenses. You may assume that Betty will owe $2,624 in self-employment tax on her salon income, with $1,312 representing the employer portion of the self-employment tax. You may also assume that her divorce from Rocky was finalized in 2016.
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Interest income
$ 14,975
Salon sales and revenue
88,760
Salaries paid to beauticians
46,550
Beauty salon supplies
23,640
Alimony paid to her ex-husband, Rocky
7,200
Rental revenue from apartment building
35,540
Depreciation on apartment building
14,100
Real estate taxes paid on apartment building
12,060
Real estate taxes paid on personal residence
6,937
Contributions to charity
5,029
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a. Determine Betty's AGI. (Amounts to be deducted should be indicated by a minus sign.)
Betty operates a beauty salon as a sole proprietorship. Betty also owns and rents an apartment building. In 2021, Betty had the following income and expenses. You may assume that Betty will owe $2,624 in self-employment tax on her salon income, with $1,312 representing the employer portion of the self-employment tax. You may also assume that her divorce from Rocky was finalized in 2016.
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Interest income
$ 14,975
Salon sales and revenue
88,760
Salaries paid to beauticians
46,550
Beauty salon supplies
23,640
Alimony paid to her ex-husband, Rocky
7,200
Rental revenue from apartment building
35,540
Depreciation on apartment building
14,100
Real estate taxes paid on apartment building
12,060
Real estate taxes paid on personal residence
6,937
Contributions to charity
5,029
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b-1. Complete Schedule 1 of Form 1040 for Betty.
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Visit the IRS website and download Schedule 1 of Form 1040. Enter the required values in the appropriate fields. Save your completed Tax…
Betty operates a beauty salon as a sole proprietorship. Betty also owns and rents an apartment building. This year Betty had the following income and expenses. You may assume that Betty will owe $2,502 in self-employment tax on her salon income, with $1,251 representing the employer portion of the self-employment tax. You may also assume that her divorce from Rocky was finalized in 2016.
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Interest income
$
11,255
Salon sales and revenue
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86,360
Salaries paid to beauticians
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45,250
Beauty salon supplies
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23,400
Alimony paid to her ex-husband, Rocky
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6,000
Rental revenue from apartment building
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31,220
Depreciation on apartment building
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12,900
Real estate taxes paid on apartment building
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11,100
Real estate taxes paid on personal residence
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6,241
Contributions to charity
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4,237
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b-1. Complete Schedule 1 of Form 1040 for Betty.
Chapter 2 Solutions
Concepts in Federal Taxation 2019 (with Intuit ProConnect Tax Online 2017 and RIA Checkpoint 1 term (6 months) Printed Access Card)
Ch. 2 - Prob. 1DQCh. 2 - Prob. 2DQCh. 2 - What is an arms-length transaction? What is its...Ch. 2 - Prob. 4DQCh. 2 - Prob. 5DQCh. 2 - Prob. 6DQCh. 2 - Prob. 7DQCh. 2 - Prob. 8DQCh. 2 - Prob. 9DQCh. 2 - Prob. 10DQ
Ch. 2 - Prob. 11DQCh. 2 - Prob. 12DQCh. 2 - Prob. 13DQCh. 2 - Prob. 14DQCh. 2 - Prob. 15DQCh. 2 - Prob. 16DQCh. 2 - Prob. 17DQCh. 2 - Prob. 18PCh. 2 - Prob. 19PCh. 2 - Prob. 20PCh. 2 - Prob. 21PCh. 2 - Prob. 22PCh. 2 - Prob. 23PCh. 2 - Prob. 24PCh. 2 - Prob. 25PCh. 2 - Prob. 26PCh. 2 - Prob. 27PCh. 2 - Prob. 28PCh. 2 - Prob. 29PCh. 2 - Prob. 30PCh. 2 - Prob. 31PCh. 2 - Prob. 32PCh. 2 - Prob. 33PCh. 2 - Prob. 34PCh. 2 - Prob. 35PCh. 2 - Prob. 36PCh. 2 - Prob. 37PCh. 2 - Prob. 38PCh. 2 - Prob. 39PCh. 2 - Prob. 40PCh. 2 - Prob. 41PCh. 2 - Prob. 42PCh. 2 - Prob. 43PCh. 2 - Prob. 44PCh. 2 - Prob. 45PCh. 2 - Prob. 46PCh. 2 - Prob. 47PCh. 2 - Prob. 48PCh. 2 - Prob. 49PCh. 2 - Prob. 50PCh. 2 - Prob. 51PCh. 2 - Prob. 52PCh. 2 - Prob. 53PCh. 2 - Prob. 54PCh. 2 - Prob. 55PCh. 2 - Prob. 56PCh. 2 - Prob. 57PCh. 2 - Prob. 58PCh. 2 - Prob. 59PCh. 2 - Prob. 60PCh. 2 - Prob. 61PCh. 2 - Prob. 62PCh. 2 - Prob. 63IIPCh. 2 - Prob. 64IIPCh. 2 - Prob. 65IIPCh. 2 - Jerry and his wife, Joanie, own a successful...Ch. 2 - Prob. 67IIPCh. 2 - Prob. 68IIPCh. 2 - Prob. 69IIPCh. 2 - Prob. 70IIPCh. 2 - Prob. 71IIPCh. 2 - Prob. 79DCCh. 2 - Prob. 80DCCh. 2 - Prob. 81TPC
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- Betty operates a beauty salon as a sole proprietorship. Betty also owns and rents an apartment building. This year Betty had the following income and expenses. You may assume that Betty will owe $2,502 in self-employment tax on her salon income, with $1,251 representing the employer portion of the self-employment tax. You may also assume that her divorce from Rocky was finalized in 2016.     Interest income $ 11,255 Salon sales and revenue  86,360 Salaries paid to beauticians  45,250 Beauty salon supplies  23,400 Alimony paid to her ex-husband, Rocky  6,000 Rental revenue from apartment building  31,220 Depreciation on apartment building  12,900 Real estate taxes paid on apartment building  11,100 Real estate taxes paid on personal residence  6,241 Contributions to charity  4,237  a. Determine Betty's AGI,  Complete Schedule 1 of Form 1040 for Betty and Complete page 1 (through line 8b) of Form 1040 for Betty.arrow_forwardRocco operates a beauty salon as a sole proprietorship. Rocco also owns and rents an apartment building. In 2023, Rocco had the following income and expenses. You may assume that Rocco will owe $2,516 in self-employment tax on his salon income, with $1,258 representing the employer portion of the self-employment tax. You may also assume that his divorce from Svetlana was finalized in 2016. Interest income Salon sales and revenue Salaries paid to beauticians Beauty salon supplies Alimony paid to his ex-wife, Svetlana Rental revenue from apartment building Depreciation on apartment building Real estate taxes paid on apartment building Real estate taxes paid on personal residence Contributions to charity a. Determine Rocco's AGI. Note: Amounts to be deducted should be indicated by a minus sign. Interest income Salon revenue Less: Salaries paid to beauticians ‒‒‒‒‒‒‒‒‒‒‒‒‒‒‒ Operating income from salon Apartment building revenue Apartment building income AGI $ 11,565 86,560 45,330 23,420…arrow_forwardJohn, age 52, and Lucy, age 49, are married filing jointly. Both are self employed and report their business income on Schedule C. John’s Schedule C showed $12,500 in profits during 2022 while Lucy had a loss of $4,200 on her Schedule C. Lucy also earned $5,600 from a seasonal part-time job at Target. Together, they own a residential rental property that earned $45,000 in passive income for the year. What is the maximum allowable IRA contribution for each in 2022?arrow_forward
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