Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I.M. Ficher Personal Tax Issue Your firm has managed all the financial records for I.M. Ficher's Technology company for the last 5 years. You have

image text in transcribed
I.M. Ficher Personal Tax Issue Your firm has managed all the financial records for I.M. Ficher's Technology company for the last 5 years. You have gotten to know her and her business very well over that period. She is a detailed person and maintains detailed financial and tax records for the company, as well as for herself. Ms. Ficher has also used your firm for her personal tax filing. Ms. Ficher sold her company last year, your firm coordinated all financial and tax documents for the sale. There are no carryovers related to this transaction. Her main source of income this year will be provided by investments made with proceeds from the sale of her company - she will use cash and cash equivalents. She expects to consume $250,000.00 of these cash and cash equivalents assets. She would like to convert her hobby (bass fishing) into a business. For this year's filing, Ms. Ficher has included the following and requested that these financials be included in her personal tax returns for this year: Ms. Ficher established in the current tax filing year: I.M. Ficher, LLC - as her bass fishing entity. Her boat was purchased 2 years ago at a cost of $75,250.0 Expenses/Income: Current Tax Filing Year Item Cost Pick-up Truck $77,250.00 Fishing Tackle $11,274.00 Boat House $37,750.00 Expenses Costs Mileage traveling to fishing tournaments $3,789.00 Meals and Lodging $13,587.00 Fishing apparel $3,756.00 Boat maintenance $3,756.00 Income Tournament winnings $56,750.00 Corporate sponsorships cash and In-kind $13,000.00 The senior partner of your firm has asked you to look at this issue and recommend a course of action for Ms. Ficher's personal tax filings for the current year. State in your posts any assumptions that you make to address this issue

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_2

Step: 3

blur-text-image_3

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

Interpreting And Analyzing Financial Statements

Authors: Karen P Schoenebeck, Mark P Holtzman

5th Edition

0136121985, 9780136121985

More Books

Students also viewed these Accounting questions