In 2020, Eileen, a self-employed nurse, drives her car 20,000 miles, of which 12,000 miles pertain to business. Expenses concerning the car include the following: $5,720 90 900 700 400 300 150 2,960 Gas and oil Auto license tag Insurance Repairs Tires Parking during business use Tolls during business use Depreciation Assuming Eileen purchases the car in 2020 and she wants to use the most advantageous method to determine her 2020 deduction for automobile expense, what amount can Eileen deduct as auto expenses? Oa. $6,462 Ob. $7,350 Oc. $6.912 Od. $10,770 Oe. $6,540
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- Jane had AGI of $70,000 in 2020. During the year, her personal winter cabin was damaged by a fire. Pertinent data with respect to the cabin follows: Cost basis $300,000 Value before the fire 450,000 Value after the fire 125,000 Insurance recovery 350,000 What is Jane's itemized casualty loss deduction? B) Hannan lives and works in Pittsburgh. He travels to Montecito for eight days. If six days are spent on business and two days are spent on sightseeing and visiting relatives, only 75% of the airfare is deductible.Tony and Suzie see the need for a rugged all-terrain vehicle to transport participants and supplies. They decide to purchase a used Suburban on July 1, 2025, for $15,000. They expect to use the Suburban for five years and then sell the vehicle for $6,000. The following expenditures related to the vehicle were also made on July 1, 2025: • The company pays $2,550 to GEICO for a one-year insurance policy. • The company spends an extra $6,000 to repaint the vehicle, placing the Great Adventures logo on the front hood, back, and both sides. • An additional $2,750 is spent on a deluxe roof rack and a trailer hitch. The painting, roof rack, and hitch are all expected to increase the future benefits of the vehicle for Great Adventures. In addition, on October 22, 2025, the company pays $1,900 for basic vehicle maintenance related to changing the oil, replacing the windshield wipers, rotating the tires, and inserting a new air filter. Requirement General Journal General Ledger Trial Balance…Tony and Suzie see the need for a rugged all-terrain vehicle to transport participants and supplies. They decide to purchase a used Suburban on July 1, 2022, for $12,000. They expect to use the Suburban for five years and then sell the vehicle for $4,500. The following expenditures related to the vehicle were also made on July 1, 2022:• The company pays $1,800 to GEICO for a one-year insurance policy.• The company spends an extra $3,000 to repaint the vehicle, placing the Great Adventures logo on the front hood, back, and both sides.• An additional $2,000 is spent on a deluxe roof rack and a trailer hitch.The painting, roof rack, and hitch are all expected to increase the future benefits of the vehicle for Great Adventures. In addition, on October 22, 2022, the company pays $400 for basic vehicle maintenance related to changing the oil, replacing the windshield wipers, rotating the tires, and inserting a new air filter.Required:1. Record the expenditures related to the vehicle on July…
- In 2020, Ally paid $ 35,250 in personal interest during 2020 as follows: • $ 16,000 – Loan of $ 400,000 secured by personal residence to purchase the house.• $ 18,000 – Loan of $ 600,000 secured by principal residence. $ 400,000 was used to substantially improve the house and $ 200,000 was used for personal purposes.• $ 1,250 – Personal automobile loan interest. Gabby uses her auto 40% for business travel required by her employer. All 3 loans were taken out in 2019. How much interest may Ally claim as an itemized deduction in 2020? a. $ 28,500b. $ 28,000c. $ 27,000d. $ 26,500e. $ 16,000Tony and Suzie see the need for a rugged all-terrain vehicle to transport participants and supplies. They decide to purchase a used Suburban on July 1, 2025, for $15,000. They expect to use the Suburban for five years and then sell the vehicle for $6,000. The following expenditures related to the vehicle were also made on July 1, 2025: • . The company pays $2,550 to GEICO for a one-year insurance policy. The company spends an extra $6,000 to repaint the vehicle, placing the Great Adventures logo on the front hood, back, and both sides. . An additional $2,750 is spent on a deluxe roof rack and a trailer hitch. The painting, roof rack, and hitch are all expected to increase the future benefits of the vehicle for Great Adventures. In addition, on October 22, 2025, the company pays $1,900 for basic vehicle maintenance related to changing the oil, replacing the windshield wipers, rotating the tires, and inserting a new air filter. 4. Record the depreciation expense and any other adjusting…Tony and Suzie see the need for a rugged all-terrain vehicle to transport participants and supplies. They decide to purchase a used Suburban on July 1, 2025, for $12,000. They expect to use the Suburban for five years and then sell the vehicle for $4,500. The following expenditures related to the vehicle were also made on July 1, 2025: The company pays $1,800 to GEICO for a one-year insurance policy. • The company spends an extra $3,000 to repaint the vehicle, placing the Great Adventures logo on the front hood, back, and both sides. • An additional $2,000 is spent on a deluxe roof rack and a trailer hitch. The painting, roof rack, and hitch are all expected to increase the future benefits of the vehicle for Great Adventures. In addition, on October 22, 2025, the company pays $400 for basic vehicle maintenance related to changing the oil, replacing the windshield wipers, rotating the tires, and inserting a new air filter. 2. Record the expenditure related to vehicle maintenance on…
- ces Tamar owns a condominium near Cocoa Beach in Florida. In 2023, she incurs the following expenses in connection with her condo: Insurance $580 545 Advertising expense Mortgage interest Property taxes 4,550 960 Repairs & maintenance Utilities 1,160 Depreciation 720 9,700 During the year, Tamar rented out the condo for 81 days, receiving $23,500 of gross income. She personally used the condo for 57 days during her vacation. Tamar's itemized deduction for nonrental taxes is less than $10,000 by more than the property taxes allocated to the rental use of the property. Assume Tamar uses the Tax Court method of allocating expenses to rental use of the property. Assume 365 days in the current year. Note: Do not round apportionment ratio. Round all other dollar values to the nearest whole dollar amount. Required: a. What is the total amount of for AGI (rental) deductions Tamar may deduct in the current year related to the condo (assuming she itemizes deductions before considering deductions…Tony and Suzie see the need for a rugged all-terrain vehicle to transport participants and supplies. They decide to purchase a used Suburban on July 1, 2025, for $15,000. They expect to use the Suburban for five years and then sell the vehicle for $6,000. The following expenditures related to the vehicle were also made on July 1, 2025: The company pays $2,550 to GEICO for a one-year insurance policy. The company spends an extra $6,000 to repaint the vehicle, placing the Great Adventures logo on the front hood, back, and both sides. An additional $2,750 is spent on a deluxe roof rack and a trailer hitch. The painting, roof rack, and hitch are all expected to increase the future benefits of the vehicle for Great Adventures. In addition, on October 22, 2025, the company pays $1,900 for basic vehicle maintenance related to changing the oil, replacing the windshield wipers, rotating the tires, and inserting a new air filter. Record the expenditures related to the vehicle on July 1, 2025.…Tony and Suzie see the need for a rugged all-terrain vehicle to transport participants and supplies. They decide to purchase a used Suburban on July 1, 2025, for $15,000. They expect to use the Suburban for five years and then sell the vehicle for $6,000. The following expenditures related to the vehicle were also made on July 1, 2025: ⚫ The company pays $2,550 to GEICO for a one-year insurance policy. • • The company spends an extra $6,000 to repaint the vehicle, placing the Great Adventures logo on the front hood, back, and both sides. An additional $2,750 is spent on a deluxe roof rack and a trailer hitch. The painting, roof rack, and hitch are all expected to increase the future benefits of the vehicle for Great Adventures. In addition, on October 22, 2025, the company pays $1,900 for basic vehicle maintenance related to changing the oil, replacing the windshield wipers, rotating the tires, and inserting a new air filter. 2. Record the expenditure related to vehicle maintenance on…
- Tamar owns a condominium near Cocoa Beach in Florida. In 2022, she incurs the following expenses in connection with her condo: $ 1,000 Insurance Advertising expense Mortgage interest Repairs & maintenance Property taxes 500 3,500 900 650 Utilities Depreciation 950 8,500 During the year, Tamar rented out the condo for 75 days, receiving $10,000 of gross income. She personally used the condo for 35 days during her vacation. Tamar's itemized deduction for nonrental taxes is less than $10,000 by more than the property taxes allocated to the rental use of the property. Assume Tamar uses the Tax Court method of allocating expenses to rental use of the property. Assume 365 days in the current year. Note: Do not round apportionment ratio. Round all other dollar values to the nearest whole dollar amount. Required: a. What is the total amount of for AGI (rental) deductions Tamar may deduct in the current year related to the condo (assuming she itemizes deductions before considering deductions…During 2021 Jean underwent the following transactions: $100,000 for pain and suffering and $20,000 in punitive damages related to a workplace injury she suffered in 2020. Received 12 payments from an annuity in the amount of $3,000 a month for a total of $36,000. She originally purchased the annuity contract for $200,000 and began receiving payments when she turned 60 years old. • Won a car with a fair market value of $30,000. Required: How much did Jean's 2021 gross income increase as a result of the above transactions?Allan’s employer purchased a car in March 2020 at a cost of $44,000 GST inclusive and provided the car to Allan on 1 April 2020. Allan garages the car at his home each night during the 2020/21 FBT year. Allan traveled 40,000 kilometers in the car during the year, and the odometer and logbook records show that 10,000 kilometers were for business purposes and 30,000 kilometers were for private purposes. The operating costs of the car (not including deemed depreciation and deemed interest) were $9,000 (GST inclusive). Allan did not make any contribution but provided all the necessary documents for his employer to calculate his FBT liability. Advise Allan and his employer of the tax consequences of this transaction.