Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

e) They also paid the following taxes in the current year. Real estate taxes on their principal residence $4,762 Estimatedstate income tax payments $1,000 State

image text in transcribed
e) They also paid the following taxes in the current year. Real estate taxes on their principal residence $4,762 Estimatedstate income tax payments $1,000 State tax paymentin the current year related to last year's return $1,500 Estimatedfederal income tax payments $3,000 () They also paid the following interestin the current year (they receiveda Form 1098 for the mortgageinterest): $3,500 related to a car loan $1,500 related to a credit card used for personal purposes $8,200 related to the original purchase of their personal residence The amount of the loan was $400,000. $2,000 related to the original purchase of a vacationhome. The amount of the loan was $300,000. $2,000 of home equity debt tied to their personal residenceused for a vacation g) They made the following charitablecontributionsduring the year. Cash contributionto their church $3,000 Apple stock to Purdue University(originallypurchasedin 2015 for $3,000, and now worth $5,000). You do not need to prepare a Form 8283. Food for a neighborwho suffereda tragic car accident this past year $250 You do not need to prepare a Form 8283. The charitable contribution limitations do not apply. h) Josh owns a dental practice (sole proprietorship called "Choppers" His businessis located at 645 West Avenue, Lafayette, IN 47907 and his employer identification number is 01- 2222222 Choppersgross receipts during the year were $1 11,000. Choppersuses the cash method of accounting for his business and the business expenses were as follows Wages to employees 40,000 Dental supplies (not COGS) 6,000 Rent for the office 25,000 All expenses are currently deductiblein the current period and the businesshas no qualified property. i) Josh and Carli paid $10,000 in tuition to Purdue for Ryker during 2019. Rykerreceiveda Form 1098-T from Purdue but box 7 was not checked

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Strategic Management Formulation Implementation And Control

Authors: John A Pearce , Richard B Robinson Jr

9th Edition

0072980079, 978-0072980073

More Books

Students also viewed these General Management questions