Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mia is employed as a restaurant manager at Jack Rabbit Slims, a 1950s themed diner that holds a dance contest every night. Prior to the

  1. Mia is employed as a restaurant manager at Jack Rabbit Slims, a 1950s themed diner that holds a dance contest every night. Prior to the CTY 2019, she just managed the restaurant five nights a week. However, due to the unexpected death of the bartender, Antwan Rockamora, Mia had to take over as bartender at Jack Rabbit Slims. Mias expenses for the CTY in connection with her job are summarized as follows:

Clothing (1950s style, adaptable to other uses)

$1,500

Bartending courses online and in class

3,500

Lodging expense for out-of-town bartending classes

950

As to the out-of-town bartending courses, Jack Rabbit Slims only paid for transportation, and asked Mia to pay for the cost of the meals and lodging. Mia paid $430 for meals. Her salary from Jack Rabbit Slims for the CTY 2019 was $65,000. Her tips from bartending totaled $8,500. How do you treat Mias activities on her 2019 tax return?

  1. Mia started getting interested in dance contests soon after working at Jack Rabbit Slims. After losing a few contests, she decided to take dance lessons. In the CTY, she spent $1,800 on dance lessons and entry fees to various dance contests. It paid off she won three contests during the CTY. Her biggest payout was a $1,000 cash prize at Twist and Shout Diner, but she also won free meals for life at Fat Bunnys Diner (valued at $2,500 per year, but she only ate $500 worth of food during the CTY). Even though she only won a trophy from the contest at Jack Rabbit Slims, that contest was her most significant win of the year.

Mia is filing jointly with her husband Wallace using the cash basis. How do you treat these activities on Mias 2019 tax return and what tax forms should be used?

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

Step: 3

blur-text-image

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

Money Banking And Financial Markets

Authors: Stephen Cecchetti, Kermit Schoenholtz

3rd Edition

007337590X, 9780073375908

More Books

Students also viewed these Finance questions

Question

read tracks from file ruby

Answered: 1 week ago

Question

=+What is the brand's character or personality?

Answered: 1 week ago