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Which of these will be included and which will be excluded from the gross income on the 1040 form? Why? (I am having a difficult
Which of these will be included and which will be excluded from the gross income on the 1040 form? Why?
(I am having a difficult time with number 4 specifically)
- Jenny receives $1,200 per month in alimony from her ex-husband.
- Jenny owns a rental property with the following financial data:
- Rental Revenue - $50,000
- Expenses:
Insurance - $5,000
Repairs - $10,500
Depreciation - $4,000
- Jenny has interest income from corporate bonds of $2,200 and interest from municipal bonds of $1,000.
- Jenny also paid the following expenses: State income taxes of $5,800, charitable contributions of $12,500, and medical expenses of $5,795 for insurance premiums; $1,100 for medical care expenses; $350 for prescription medicine; $100 for nonprescription medicine; and $200 for new contact lenses for Julia.
- Jenny received disability insurance payments of $1,200.
- Jenny runs a small business from her home giving piano lessons to kids on weekends. She had the following transactions from it: total revenue $10,000; office supplies $500; teaching materials and supplies $1050; concerts and field shows $1500; repairs and maintenance of pianos $950; wages to a teaching assistant $1000; payroll taxes $765; business insurance $420; occupational taxes and license $160.
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