Question
Marco operates a beauty salon as a sole proprietorship. Marco also owns and rents an apartment building. In 2023, Marco had the following income and
Marco operates a beauty salon as a sole proprietorship. Marco also owns and rents an apartment building. In 2023, Marco had the following income and expenses. Determine Marco's AGI and complete page I (through line 11) and Schedule I of Form 1040 for Marco. You may assume that Marco will owe $2,502 in self-employment tax on his salon income, with $1,251 representing the employer portion of the self-employment tax. You may also assume that his divorce from Svetlana was finalized in 2016.
Interest income $11,255 Salon sales and revenue $86,360 Salaries paid to beauticians $45,250 Beauty salon supplies $23,400 Alimony paid to his ex-wife, Svetlana $6,000 Rental revenue from apartment building $31,220 Depreciation on apartment building $12,900 Real estate taxes paid on apartment building $11,100 Real estate taxes paid on personal residence $6,241 Contributions to charity $4,237
Complete Form 1040, Schedule 1, Schedule 2, Schedule C and Schedule E.
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