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Please answer the attached problems. Please show the calculations for each problem and don't plagiarize. Thank you. 3) Auto Expenses. Amelie is an employee who

Please answer the attached problems. Please show the calculations for each problem and don't plagiarize. Thank you. image text in transcribed

3) Auto Expenses. Amelie is an employee who uses her personal automobile in connection with her job. During 2013, Amelie drove her car a total of $28,000 miles. Her business log shows that she drove 22,400 miles for business purposes. She is reimbursed $0.30 per mile from her employee for her business miles and she makes an adequate accounting to her employer. During 2013, Amelie incurred the following actual expenses based on 100% business use, that is, 28,000 miles: Gas and oil $7,800 Repairs and maintenance 2,300 Depreciation 5,800 Insurance 1,440 Licenses and fees 300 17,640 a. Compute Amelie's deduction before the 2% of AGI floor if she uses the actual cost method. b. Compute Amelie's deduction before the 2% of AGI floor if she uses the standard mileage method. c. Assume Amelie used the standard mileage method in 2013. In addition to the automobile expenses above, she made several business trips and incurred the following travel expenses: Airfare $4,600 Hotel 1,860 Meals and entertainment 720 Taxi fees and tips 280 Total 7,460 None of the above expenses was personal in nature and she received reimbursements from her employer of $4,476. If Amelie's AGI was $120,000, what is her deduction in 2013 after all limitations? 4) Office in Home. Nancy is a selfemployed artist who uses 10% of her residence as a studio. The studio portion is used exclusively for business and is frequented by customers on a regular basis. Nancy also uses her den as an office (10% of the total floor space of her home) to prepare bills and keep records. However, the den is also used by her children as a TV room. Nancy's income from the sale of the artwork amounts to $40,000 in the current year. She also incurs $2,000 of expenses directly related to the business other than home office expenses (e.g., art supplies and selling expenses). Nancy incurs the following expenses in the current year related to her residence: Real estate taxes $2,000 Mortgage interest 5,000 Insurance 500 Depreciation 3,500 Repairs and utilities 1,000 Total $12,000 a. Which of the expenditures above (if any) are deductible? Are they AGI or from AGI deductions? b. Would your answer to Part a change if Nancy's income from painting were only $2,500 for the year? What is the amount of the officeinhome deduction and the amount of the carryover (if any) of the unused deductions? (Assume that Nancy is not subject to the hobby loss restrictions.)

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