Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Tanesha, aged 66, is single. She has the following income and expenses in 2019: Net income from sole proprietorship business $43,000 Interest income 1,200 Alimony

Tanesha, aged 66, is single. She has the following income and expenses in 2019:

Net income from sole proprietorship business $43,000
Interest income 1,200
Alimony received in accordance with a 2017 divorce decree 10,000
Loss on sale of investments 1,100
Medical insurance premiums paid (for self-employed taxpayer) 3,000
Property tax on residence 3,850
Charitable contributions 1,350
Medical expenses 13,187
One-half of the self-employment tax paid 2,600
State income tax 1,900
Federal income tax $6,700

a. Classify the following expenses as either "Deductible for AGI", "Deductible from AGI", or "Not deductible".

Loss on sale of investments Deductible for AGI
Medical insurance premiums paid Deductible for AGI
Property tax on residence Deductible from AGI
Charitable contributions Deductible from AGI
Medical expenses Deductible from AGI
One-half of the self-employment tax paid Deductible for AGI
State income tax Deductible from AGI
Federal income tax Not deductible

The standard deduction for single filing status is $12,200. If applicable, the additional standard deduction for single taxpayers is $1,650.

In your computations, when required, round all amounts to the nearest dollar.

b. Tanesha's total income is $, and her AGI is $. (The total income is not $54,200.)

c. Compute the amount of her total itemized deductions (after any limitations): $

d. Compute her taxable income. $

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

Forensics Audits And Dreaming

Authors: Helgard Petrus - Coetser

1st Edition

1664260250, 978-1664260252

More Books

Students also viewed these Accounting questions