39. David is a college professor who does some consulting work on the side. He uses 25% of his home exclusively for the consulting practice. He is single and 63 years old. His AGI (without consideration of consulting income) is $45,000. Other information follows;Income from consulting business $4,000;Consulting expenses other than home of?ce 1,500;Total costs relating to home;Interest and taxes 6,500;Utilities 1,500;Maintenance and repairs 450;Depreciation (business part only) 1,500;Calculate David?s AGI;51. Jose purchased a vehicle for business and personal use. In 2013 he used the vehicle 18,000 miles (80%) for business and calculated his vehicle expenses using the standard mileage rate (mileage was incurred ratably throughout the year). He paid $1,400 in interest and $150 in property taxes on the car. Calculate the total business deduction related to the car;53. Derrick owns a farm in eastern North Carolina. A hurricane hit the area and destroyed a farm building and some farm equipment and damaged a barn.;Item Adjusted basis FMV before damage FMV after damage Insurance proceeds;Building $85,000 $115,000 $0 $55,000;Equipment 68,000 49,000 0 15,000;Barn 95,000 145,000 95,000 35,000;Due to the extensive damage throughout the area, the president of the United States declared all areas affected by the hurricane as a disaster area. Derrick, who?les a joint return with his wife, had $45,000 of taxable income last year. Their taxable income for the current year is $150,000, excluding the loss from the hurricane. Calculate the amount of the loss deductible by Derrick and his wife and the years in which they should deduct the loss.;(Hint: Chapter 5 provides information concerning nationally declared disaster areas.);55. Eric, who is single, participates in an activity that is appropriately classi?ed as a hobby. The activity produces the following revenue and expenses;Revenue $12,000;Property taxes 2,000;Materials and supplies 4,000;Utilities 1,500;Advertising 1,900;Insurance 775;Depreciation 5,000;Without regard to this activity, Eric?s AGI is $55,000. Determine how much income Eric must report, the amount of the expenses he is permitted to deduct, and his AGI;56. In 2013 Landon has self-employment earnings of $195,000. Compute Landon?s self-employment tax liability and the allowable income tax deduction of the self-employment tax paid.
Paper#35646 | Written in 18-Jul-2015Price : $22