Question
Year of filing is 2022 1. Cindy, a real estate broker, had the following income and expenses in her business (her filing status is head
Year of filing is 2022
1. Cindy, a real estate broker, had the following income and expenses in her business (her filing status is head of household): Commissions income $180,000 And she also incurred the following expenses during the tax year: Referral fees paid to non-brokers for referrals (illegal under state law and subject to criminal penalties) 40,000 Property tax on the office 5,500 Office supplies 3,000 Alimony payment to her ex-husband 7,200 Mortgage interest paid on her residence 6,500 Legal expenses related to her business 20,000 Office staff salaries 40,000 Medical insurance premium paid for herself and her dependents 5,000 Fees paid to Broker Association 7,000 Political contribution to support her party 3,000 Parking tickets received when she was meeting with her clients 500 Unreimbursed medical expenses for herself and her dependents 2,000 How much net income will be reported from this business (on Schedule C)? What is her AGI? How much is the total itemized deduction reported on her Sch. A?
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