Question
Warren is a single filer with no dependents. He has collected antiques for many years. he often travels to places to aquire rare pieces that
Warren is a single filer with no dependents. He has collected antiques for many years. he often travels to places to aquire rare pieces that he sells later at flea markets. since he usually loses money in total, its considered a hobby under section 183. for the current year warrens business showed the following
sales $20,000
COGS 12,000
General expenses:
Travel expense: 7500
Advertising: 1500
office supplies: 1000
licenses and fees: 2000
indiana personal property tax related to antiques: 800
warrens adjusted gross income for the year not counting any of the items above us $100,000. he has other itemized deductions (not counting any items above) of $7000.
A. compute Warrens minimum adjusted gross income.
B. Compute Warrens minimum taxable income.
C. What is the amount if carryover, if any, Warren may have into the next year?
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