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Income and Expenses Question 9 of 4 5 . Thomas opened a new retail shop in 2 0 2 2 that sells luxury pens, ink,
Income and Expenses
Question of
Thomas opened a new retail shop in that sells luxury pens, ink, and other writing essentials. He organized the business as a singlemember LLC His organizational costs, which included state filing fees and legal fees for the articles of incorporation, totaled $ What is the maximum amount that can be deducted as an immediate nonamortized expense for these organizational costs on his Schedule C
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Question of
In Irene opened a new retail shop specializing in handcrafted, artisanal gifts. Her startup costs, which included the business plan development, promotional events, and wages for employees who needed to be trained prior to the business opening, totaled $ What is the maximum amount that can be deducted as an immediate nonamortized expense on her Schedule C
$The entire amount of her startup costs.
$The maximum amount for an immediate deduction; the remaining $ must be amortized over years.
$The maximum amount for an immediate deduction is limited due to her total expenses exceeding $; the remaining $ must be amortized over years.
$No immediate deduction is allowed; the entire $ must be amortized over years.
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Javier is selfemployed. In he earned income of $ from one firm, reported to him on a Form NEC, and income of $ from another firm, also reported to him on a Form NEC. In addition, he had $ in credit card transactions reported on Form K All of the income was related to his selfemployment activity. What is the amount of gross receipts or sales that should be reported in Part I of the Schedule C for this activity?
NOTE: The amount reported as the gross amount for credit card transactions did not include any sales taxes that Javier collected and paid over to state and local governments.
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Question of
Alison is a selfemployed contractor. She uses a calendaryear, cashbasis accounting system. Which of the following should be included in calculating the amount of gross receipts and sales reported on her Schedule C
A $ check received on January for a project she completed on December
$ in prize money that she won in June for Regional Contractor of the Year.
$ check from a customer for merchandise they purchased on December Alison did not get around to cashing the check until January
$ in credit card processing fees for related to her received Form K
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Question of
Kelvin, a cashbasis taxpayer, operates a small bookstore. His records show the following income items for :
Sales Paid, $
Sales Unpaid, $
Sale of cardboard packaging to recycling company Paid, $
Sales bonus from publisher Paid, $
What is the amount of gross receipts and sales that should be reported in Part of Kelvin's Schedule C
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