Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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?

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

Audit Of The Drug Enforcement Administrations Controls Over Seized And Collected Drugs

Authors: Office Of Inspector General, U.S. Department Of Justice, Penny Hill Press

1st Edition

1537075683, 978-1537075686

More Books

Students also viewed these Accounting questions

Question

Differentiate 3sin(9x+2x)

Answered: 1 week ago

Question

Compute the derivative f(x)=(x-a)(x-b)

Answered: 1 week ago