Question
Anibal Cruz operates a sole proprietorship. He also owns and rents an apartment building. In 2022, Anibal Cruz Betty had the following income and expenses:
Anibal Cruz operates a sole proprietorship. He also owns and rents an apartment building. In 2022, Anibal Cruz Betty had the following income and expenses:
Interest income from qualified bonds $10,000
Dividend income from qualified stock $10,000
Income from business $90,000
Expenses for business
Salaries $34,000
Other qualified expenses $12,000
Income from rental studio for university student $12,000
Expenses for rental studio
Real estates $2,400
Maintenance $2,200
Other ordinary and necessary expenses $2,350
Instructions
1. Determine the net income of the self-employed business 5 points.
2. Determine the net income from the studio rental activity 5 points.
3. Anibal has no dependents, he lives with his wife Hanna who is the same age as him, and has no itemized deductions, you are 66 years old, please determine Anibal's adjusted gross income, and the amount you must pay him IRS for tax year 2022. Remember to present your procedure to arrive at your respective results
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