. Clem is married and is a skilled carpenter. Clem's wife, Wanda, works part time as a substitute grade school teacher. Determine the amount of Cler expenses that are deductible for AGI this year (if any) under the following independent circumstances: a) Clem is self-employed, and this year he incurred $525 in expenses for tools and supplies related to his job. Because neither was covered by a qualified health plan, Clem paid health insurance premiums of $3,600 to provide coverage for himself and Wanda (not through an exchange). b) Clem and Wanda own a garage downtown that they rent to a local business for storage. This year they incurred expenses of $1,250 in utilities and $780 in depreciation. c) Clem paid self-employment tax of $15,300 (the employer portion is $7,650), and Wanda had $3,000 of Social Security taxes withheld from her p d) Clem paid $45 to rent a safety deposit box to store his coin collection. Clem has collected coins intermittently since he was a child, and he expec to sell his collection when he retires. Page 6-3
. Clem is married and is a skilled carpenter. Clem's wife, Wanda, works part time as a substitute grade school teacher. Determine the amount of Cler expenses that are deductible for AGI this year (if any) under the following independent circumstances: a) Clem is self-employed, and this year he incurred $525 in expenses for tools and supplies related to his job. Because neither was covered by a qualified health plan, Clem paid health insurance premiums of $3,600 to provide coverage for himself and Wanda (not through an exchange). b) Clem and Wanda own a garage downtown that they rent to a local business for storage. This year they incurred expenses of $1,250 in utilities and $780 in depreciation. c) Clem paid self-employment tax of $15,300 (the employer portion is $7,650), and Wanda had $3,000 of Social Security taxes withheld from her p d) Clem paid $45 to rent a safety deposit box to store his coin collection. Clem has collected coins intermittently since he was a child, and he expec to sell his collection when he retires. Page 6-3
Chapter15: Choice Of Business Entity—other Considerations
Section: Chapter Questions
Problem 49P
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Question
Transcribed Image Text:27. Clem is married and is a skilled carpenter. Clem's wife, Wanda, works part time as a substitute grade school teacher. Determine the amount of Clem's
expenses that are deductible for AGI this year (if any) under the following independent circumstances:
a) Clem is self-employed, and this year he incurred $525 in expenses for tools and supplies related to his job. Because neither was covered by a
qualified health plan, Clem paid health insurance premiums of $3,600 to provide coverage for himself and Wanda (not through an exchange).
b) Clem and Wanda own a garage downtown that they rent to a local business for storage. This year they incurred expenses of $1,250 in
utilities and $780 in depreciation.
Page 6-37
c) Clem paid self-employment tax of $15,300 (the employer portion is $7,650), and Wanda had $3,000 of Social Security taxes withheld from her pay.
d) Clem paid $45 to rent a safety deposit box to store his coin collection. Clem has collected coins intermittently since he was a child, and he expects
to sell his collection when he retires.
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