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Anthony, one of your cousins, is operating a very successful luxury nail salon called An-Toe-Nail. Other than that, Anthony is also work part-time as a
Anthony, one of your cousins, is operating a very successful luxury nail salon called An-Toe-Nail. Other than that, Anthony is also work part-time as a freelancer graphic designer. In 2020, Anthony have the income from his designing job of $100k and the revenue from the An-Toe-Nail salon is $800k. During 2020, below are items that Anthony spend money on:
- Anthony purchased a new car in Jan 2020 which cost $60k. The car is his main vehicle for the year which he will use to drive to and from work.
- Employee salary: $300k in total, paying for 6 nail technicians, each $50k/year.
- Utilities cost: $10k
- Supplies (nail polishes, glitter, chemical, etc.): $10k
- Nail salon equipment: $50k. Anthony told you that these equipment need to be purchased new every year for some reason. Since the nail salon is a luxury one, he spent twice the money to buy this luxury equipment (the similar but lower quality equipment only cost $25k).
Anthony asks for your help in figuring out his taxable income for 2020 before the standard deduction. As a tax expert, you understand that what he means was to help him calculate his AGI.
- What is Anthony Gross income in 2020? (Show calculation and explanation if needed)
- What is Anthony Deduction for AGI in 2020? Show calculation and explanation. Answer without explanation will result in no credit
- Provided that AGI = Total Gross income Total Deduction for AGI. What is Anthony AGI for 2020?
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