Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. In asking Roxie about any additional income that she might have; she mentions that she did receive around $1 per month from her local

1. In asking Roxie about any additional income that she might have; she mentions that she did receive around $1 per month from her local bank. She did not receive any tax forms (1099-INTs) related to this.

Does this get reported on a tax return and how?

2. As Roxie is retired, she does some small jobs for the local church. Essentially, they pay her $20 a week to walk dogs that are dropped off at the doggie day care facility that the church operates. Total amount paid to Roxie was $1,040. No 1099 was received.

Does this get reported on a tax return if no 1099 was received and how?

3. When talking about taxes, Roxie remembered that back in 2015 she invested $4,000 in her cousins (Willies) startup lawncare business (an S Corporation). Roxie was the only investor into the business. Unfortunately, COVID caused the business to struggle and in 2020, Willie closed the business for good. All assets were sold to pay liabilities Roxie received nothing; her stock is worthless. Roxie realized the risk that she could lose all of her money when investing into Willies business. She was a bit sad but it was fun to see Willie chase his dreams.

Does this get reported on a tax return and how?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones

10th Edition

324300980, 978-0324300987

Students also viewed these Accounting questions