Question
Lyn , a single, self-employed investment counselor who also owns a rental property. This year, she collected $85,000 in fees and paid the following business
Lyn, a single, self-employed investment counselor who also owns a rental property. This year, she collected $85,000 in fees and paid the following business and personal expenses
Expenses below: |
|
| |
Health insurance premiums (not through an exchange) | $ | 4,200 | |
Life insurance premiums (whole life) | $ | 1,900 | |
Books on investing | $ | 200 | |
Repairs of the rental property | $ | 450 | |
Advertising for investment clients | $ | 1,770 | |
State income taxes | $ | 4,300 | |
Self-employment tax (hint: half is employer share) | $ | 11,732 | |
Marketing Lunch and Dinners with potential clients | $ | 500 |
Home mortgage interest (acquisition debt of $300,000) | $16,640 |
Real estate taxes | $5,400 |
State income taxes paid | 6,300 |
Medical expenses (unreimbursed) | 1,800 |
Employee business expenses (unreimbursed) | 450 |
Charitable contributions (cash to their church) | 760 |
Calculate Lin Lees adjusted gross income and taxable income?
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