Question
Shelly is self-employed. In 2020, Shelly had net earnings from her business of $160,000. The following items relate to her 2020 taxes: SEP retirement contribution
Shelly is self-employed. In 2020, Shelly had net earnings from her business of $160,000. The following items relate to her 2020 taxes:
SEP retirement contribution - $5,000
Health insurance premiums paid - $12,000
Self-employment tax - $22,000
If Shelly had no other income or expense items, her adjusted gross income in 2020 would be:
A. $143,000
B. $132,000
C. $155,000
D. $138,000
Eric acquires a 7-year class asset on May 9, 2021, for $50,000 (the only asset acquired during the year). Euclid does not elect immediate expensing under 179. He does not claim any available additional first-year depreciation.
Calculate Euclid's cost recovery deduction for 2021.
A | $7,145 | |
B | $10,000 | |
C | $12,245 | |
D | $5,000 |
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