Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Yvonne Belmont lives at 1310 Meadow Lane, Farmingdale, NY 11735, and her Social Security number is 123-45-6777. Yvonne is single and has a 20-year-old son,

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

Yvonne Belmont lives at 1310 Meadow Lane, Farmingdale, NY 11735, and her Social Security number is 123-45-6777. Yvonne is single and has a 20-year-old son, Bob. His Social Security number is 111-11-1112. Bob lives with Yvonne, and she fully supports him. Bob spent 2019 traveling in Europe and was not a college student. He had gross income of $4,655 in 2019. Bob paid $4,000 of lodging expenses that Yvonne reimbursed after they were fully documented. Yvonne paid the $4,000 to Bob using a check from her sole proprietorship. That amount is not included in the items listed below. Yvonne had substantial health problems during 2019, and many of her expenses were not reimbursed by her health insurance Yvonne owns Belmont Enterprises, LLC (98-7654321), a data processing service that she operates as a sole proprietorship. Her business is located at 456 Hill Street, Farmingdale, NY 11735. The business activity code is 514210. Accounting Method is "Cash Basis." Her 2019 Form 1040, Schedule C for Belmont Enterprises shows revenues of $315,000, office expenses of $66,759, employee salary of $63,000, employee payroll taxes (category: "Taxes/Licenses Expenses")of $4,820, business meal expenses (before the 50% reduction) of $22,000, and rent expense of $34,000. The rent expense includes payments related to renting an office ($30,000) and payments related to renting various equipment ($4,000). There is no depreciation because all depreciable equipment owned has been fully depreciated in previous years. No fringe benefits are provided to the employee. Yvonne personally purchases health insurance on herself and Bob. The premiums are $23,000 per year. Yvonne has an extensive stock portfolio and has prepared the following analysis: Yvonne itemizes her deductions and provides the following information, which may be relevant to her return: Amount Comment $ 9,748 Does not include health insurance premiums. 1,830 Item Unreimbursed medical expenses for Yvonne NY State income taxes paid Real property taxes on personal residence Interest paid on home mortgage (Form 1098) 3,230 Charitable contributions 8,137 The loan is secured by the residence and was incurred when the home was purchased in 2004. The mortgage is with Wells Fargo, outstanding principal is $200,000. 1,399 $940 cash payments to Yvonne's church and $459 cash payments made to homeless persons for whom she felt sorry. She can document all the expenditures. 619 Amount per sales tax table. Sales taxes Yvonne itemizes her deductions and provides the following information, which may be relevant to her return: Amount Comment $ 9,748 Does not include health insurance premiums. 1,830 Item Unreimbursed medical expenses for Yvonne NY State income taxes paid Real property taxes on personal residence Interest paid on home mortgage (Form 1098) 3,230 Charitable contributions 8,137 The loan is secured by the residence and was incurred when the home was purchased in 2004. The mortgage is with Wells Fargo, outstanding principal is $200,000. 1,399 $940 cash payments to Yvonne's church and $459 cash payments made to homeless persons for whom she felt sorry. She can document all the expenditures. 619 Amount per sales tax table. Sales taxes Yvonne Belmont lives at 1310 Meadow Lane, Farmingdale, NY 11735, and her Social Security number is 123-45-6777. Yvonne is single and has a 20-year-old son, Bob. His Social Security number is 111-11-1112. Bob lives with Yvonne, and she fully supports him. Bob spent 2019 traveling in Europe and was not a college student. He had gross income of $4,655 in 2019. Bob paid $4,000 of lodging expenses that Yvonne reimbursed after they were fully documented. Yvonne paid the $4,000 to Bob using a check from her sole proprietorship. That amount is not included in the items listed below. Yvonne had substantial health problems during 2019, and many of her expenses were not reimbursed by her health insurance Yvonne owns Belmont Enterprises, LLC (98-7654321), a data processing service that she operates as a sole proprietorship. Her business is located at 456 Hill Street, Farmingdale, NY 11735. The business activity code is 514210. Accounting Method is "Cash Basis." Her 2019 Form 1040, Schedule C for Belmont Enterprises shows revenues of $315,000, office expenses of $66,759, employee salary of $63,000, employee payroll taxes (category: "Taxes/Licenses Expenses")of $4,820, business meal expenses (before the 50% reduction) of $22,000, and rent expense of $34,000. The rent expense includes payments related to renting an office ($30,000) and payments related to renting various equipment ($4,000). There is no depreciation because all depreciable equipment owned has been fully depreciated in previous years. No fringe benefits are provided to the employee. Yvonne personally purchases health insurance on herself and Bob. The premiums are $23,000 per year. Yvonne has an extensive stock portfolio and has prepared the following analysis: Yvonne itemizes her deductions and provides the following information, which may be relevant to her return: Amount Comment $ 9,748 Does not include health insurance premiums. 1,830 Item Unreimbursed medical expenses for Yvonne NY State income taxes paid Real property taxes on personal residence Interest paid on home mortgage (Form 1098) 3,230 Charitable contributions 8,137 The loan is secured by the residence and was incurred when the home was purchased in 2004. The mortgage is with Wells Fargo, outstanding principal is $200,000. 1,399 $940 cash payments to Yvonne's church and $459 cash payments made to homeless persons for whom she felt sorry. She can document all the expenditures. 619 Amount per sales tax table. Sales taxes Yvonne itemizes her deductions and provides the following information, which may be relevant to her return: Amount Comment $ 9,748 Does not include health insurance premiums. 1,830 Item Unreimbursed medical expenses for Yvonne NY State income taxes paid Real property taxes on personal residence Interest paid on home mortgage (Form 1098) 3,230 Charitable contributions 8,137 The loan is secured by the residence and was incurred when the home was purchased in 2004. The mortgage is with Wells Fargo, outstanding principal is $200,000. 1,399 $940 cash payments to Yvonne's church and $459 cash payments made to homeless persons for whom she felt sorry. She can document all the expenditures. 619 Amount per sales tax table. Sales taxes

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

Financial Management Core Concepts

Authors: Ray Brooks, Raymond Brooks

1st Edition

0321155173, 9780321155177

More Books

Students also viewed these Finance questions

Question

Explain the meaning of ergonomics.

Answered: 1 week ago