Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Melvin, a self-employed consultant, incurs the following business-related expenses in 2021: LOADING...(Click the icon to view the employment-related expenses.) LOADING...Click the icon to view the
Melvin, a self-employed consultant, incurs the following business-related expenses in 2021: LOADING...(Click the icon to view the employment-related expenses.) LOADING...Click the icon to view the standard deduction schedule.) earned of gross income from his consulting business and had of interest and dividend income in before any of the above expenses are deducted. He has of itemized deductions. is married and files a joint return with his wife, , who has no income. Read the requirementsLOADING.... Question content area bottom Part 1 Requirement a. What is the amount of 's deduction for business-related expenses for ? Begin by selecting whether each of the following amounts are deductible for , whether they are deductible for AGI or from AGI, and whether or not they are subject to any limitations. Actual automobile expenses Moving expenses deductible under Sec. 217 Entertainment expenses Travel expenses (excluding meals) Business meals Professional dues and subscriptions STANDARD DEDUCTION Filing Status Married individuals filing joint returns and surviving spouses $25,100 Heads of households $18,800 Unmarried individuals (other than surviving spouses and heads of households) $12,550 Married individuals filing separate returns $12,550 Additional standard deduction for the aged and the blind; Individual who is married and surviving spouses $1,350* Additional standard deduction for the aged and the blind; Individual who is unmarried and not a surviving spouse $1,700* Taxpayer claimed as dependent on another taxpayers return: Greater of (1) earned income plus $350 or (2) $1,100. * These amounts are $2,700 and $3,400, respectively, for a taxpayer who is both aged and blind.Actual automobile expenses $2,300 Moving expenses 6,000 Entertainment expenses 1,600 Travel expenses (including $300 of business meals) 3,400 Professional dues and subscriptions 550 Total $13,850 pop-up content ends
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