Question
Ashley McCall, a self-employed hair dresser lives with her 15 year old daughter Brittney. Ashley has gathered her 2016 financial data, as follows. 2015 Federal
Ashley McCall, a self-employed hair dresser lives with her 15 year old daughter Brittney. Ashley has gathered her 2016 financial data, as follows.
2015 Federal income tax due with return in April, 2016. $540
2015 State income tax refund in received April, 2016 550
Child Support received from Ashleys father 6,250 Cash contributions to various qualified charities 2,690
Paid out of pocket doctor bills (unreimbursed) 776 Federal quarterly estimated tax payments 11,400 Health insurance, family coverage 6,340 High school tuition for Brittney at Divine Savior of Holy Angels 3,240
Interest Income, Dane County School Bond 540
LT capital gain on sale of Dane County School Bond 325 Meals with 2 hair salon owners to discuss possible mergers 90 Mortgage interest on primary residence (purchased April, 2016) 7,200
Non-prescription cold remedies etc 900 Prescription medication 870 Real estate taxes ($3,540 paid in Dec, of which $1,240 was allocated to seller) 2,300
Rent expense paid for hair salon 7,200
Rent expense paid for Ashley & Brittney apartment Jan-March 3,600
Revenues from hair salon 87,600 Hair Stylist Trends and Techniques continuing education course 550 Salon Chairpurchased new chair 1,240 Shampoo, chemicals & supplies used in hair salon 4,700 State quarterly estimated tax payments 4,800 Tax return preparation fees 425
Auto records show: MileageBusiness miles in hair salon business 210 miles, commuting 1,410 miles, and 7,890 miles driven personally, for a total of 9,510 miles drive during the year.
Ashley took the standard deduction in 2016.
In addition, she received a K-1 from an oil and gas partnership which her grandfather gave her two years ago. She had a suspended loss carryforward on this partnership of $2,340 and the current year K-1 reported ordinary loss of $525. To fund the home purchase, she sold the partnership in February, 2016 resulting in a capital gain of $27,500 capital gain.
What is Ashleys Schedule C, subject to SE tax?
What is Ashleys Adjusted Gross Income? (Ignore 12 Self Employment Tax)
What is Ashleys Total Itemized Deductions?
What is Ashleys Taxable Income?
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