Question
Hello, my name is Din Djarin. Glad to hear you are willing to be my new tax advisor. My business manager is not so good
Hello, my name is Din Djarin. Glad to hear you are willing to be my new tax advisor. My business manager is not so good at taxes. He says we should start with my Gross Income whatever that means. Hopefully you can explain it to me so I understand. So, let me tell you about my year and you can let me know if you need more information than that. I had a lot of good thing happen but also a couple of setbacks. First, I got a promotion to manager for Tatooine Sandwich Makers, Inc. in January. I earned $105,000 in base salary this year. I also got $500 and a mantel clock worth $550 as an award for our 5-year safety record. The cash was nice but not sure what I am going to do with the clock. Hopefully I will earn some kind of bonus next year also. I purchased a used set of luggage at a local resale store. When I was packing for a trip to Coruscant I found an envelope with $15,000 inside the suitcase. What a great day. Oh, and I won the trip from a local travel agency in October. They said the trip was worth $9,800. I have been living right. My good friend, Kuiil, bought me a Tesla Falcon Wing SUV this year in December that cost $91,000. As part of my manager duties, I get to decide on certain things like contracts for the company. My good buddy, Kuiil, runs a logistics and shipping company. I made sure that he won the new shipping contracts for the Twin Suns region for Tatooine for this year (even though his bid wasnt the best or the lowest). He should be able to make $200,000 or more per year for the next 5 years. Glad to help such a good buddy. I like to gamble a lot. I won $16,000 betting on the Moff Gideon Dark Light Saber challenge. I also won about $3,200 over the year at our Friday night Liars Poker games. Unfortunately, I lost $9,000 betting on Pod racing and another $2,500 on my fantasy Light Saber league. Still my winnings were better than my losing. Even though it was a pretty good year I did have a few setbacks. My great uncle, Jango, died this year in March. He was my favorite uncle (he was my only uncle). He left me $590,000 in cash and $155,000 worth of stock in his will. I invested some of the cash in stocks and bonds and put the rest into my savings account. As a result, I received $10,500 in dividends from the stock, $6.600 in interest from the municipal bonds, and $2,500 in interest from my savings account. One of the stocks Vader Inc had a great year. I bought 1000 shares for $10 a share and at the end of the year it was up to $45 a share. Nice right? I did have another bit of bad news this year, my boss told me on December 2 that they were laying me off from the company. They gave me a $20,000 severance check on December 28. I decided to hold on to that check and not cash it until next year, so I wont have to pay taxes on it this year. Pretty smart, huh? And I was able to collect $4,250 in unemployment compensation. Finally, my ex-wife, Omera, is still paying me alimony. Shes a botanist who divorced me in 2016 because I was not working at the time. Since she was making so much money, and I was unemployed at the time, the judge ruled that she had to pay ME alimony. She sent me $25,000 in alimony payments this year. She must still kind of like me, though. She sent me a check for $900 for Christmas this year. I sent her a fruit basket. Oh, almost forgot about my Subchapter S corporation that I own part of. I have a 12% interest in Alderaan Corp. They had business income this year of $65,000I think thats everything. Thanks for all your help cant wait to see what you come up with.
Gross Income |
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Use the table below to show what you did and did not include in Gross Income and your explanation. Feel free to add additional rows if necessary. Omitting these explanations will result in points being deducted.
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