Question
Filing for the year 2022, Cindy, a real estate broker, had the following income and expenses in her business (her filing status is head of
Filing for the year 2022,
Cindy, a real estate broker, had the following income and expenses in her business (her filing status is head of household):
Commissions income $180,000
And she also incurred the following expenses during the tax year:
Referral fees paid to non-brokers for referrals (illegal under state law and subject to criminal penalties) | 40,000 |
Property tax on the office | 5,500 |
Office supplies | 3,000 |
Alimony payment to her ex-husband | 7,200 |
Mortgage interest paid on her residence | 6,500 |
Legal expenses related to her business | 20,000 |
Office staff salaries | 40,000 |
Medical insurance premium paid for herself and her dependents | 5,000 |
Fees paid to Broker Association | 7,000 |
Political contribution to support her party | 3,000 |
Parking tickets received when she was meeting with her clients | 500 |
Unreimbursed medical expenses for herself and her dependents | 2,000 |
How much net income will be reported from this business (on Schedule C)?
What is her AGI?
How much is the total itemized deduction reported on her Sch. A?
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