Question
I need help finding the AGI (accumulated gross income) for this problem. I got 26600 for the business profit, but am unsure where to go
I need help finding the AGI (accumulated gross income) for this problem.
I got 26600 for the business profit, but am unsure where to go from there in finding the AGI.
Here is the info:
Kennedy Prisby, age 33, is single and has no dependents.Her social security number is 111-22-3333.Her address is 101 North Fork Ave., Cedar City, UT 84720.She has no intention of donating to the Presidential Election Campaign.
She is a professional hunting guide.In January of the current year she opened an office located at 3001 Westcliffe Dr., Cedar City, UT.She worked out of her home in prior years.She has free full-year health care coverage. The name of her business is Trophy Bucks Galore.She is a cash basis taxpayer who materially participates in her business.She is not required to file any Forms 1099. The business activity code for this activity is 114210.
During the year she recorded the following income and expenses from Trophy Bucks Galore:
Guide fees$55,000
Tips from clients $10,000
Office Rent$12,000
Supplies$3,000
Insurance$1,000
Advertising$1,500
Business Travel Meals $3,000
Business Travel lodging and transportation$5,000
This year Kennedy purchased computer equipment for $3,000 and office furniture for $5,000 for her new office.If possible, she would like to elect to immediately expense the entire cost of these items using section 179.She also has an off-road vehicle used 100% in her business.She purchased it for $20,000 and placed it into service last year.She uses the 5-year 200% Double Declining MACRS cost recovery method and the Half Year Convention to depreciate the vehicle. Last year depreciation rate was 20% and the 2nd year rate is 32%.Ignore application of any listed property limitations.
She also made estimated quarterly tax payments of $1,500 per quarter for a total amount of $6,000. If she is entitled to a refund, she would like to have it applied to her next year's tax liability.
Kennedy's other income includes the following.Loss from the sale of Oopsy Inc. stock.She acquired 100 shares on June 30th five years ago for $11,000 and sold the 100 shares on August 1st of the current year for $6,000. She received a 1099-B which was reported to the IRS.She received qualified dividends from Hippie Inc. in the amount of $4,000. She earned interest income from a mutual fund at FBB Bank in the amount of $3,000.
Kennedy's personal expenses include:
Medical $2,000
Residential property tax $1,265
Mortgage interest$2,700
Church donations$2,300
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started