Allison works full time as a dental hygienist. She devotes her spare time to designing and creating stained glass pieces. During the past year, she has sold 10 of her pieces at local craft fairs and was recently commissioned to create 3 stained glass windows for the home of a new customer. She has incurred a number of expenses for taking stained glass classes, purchasing materials and tools, and participating in craft fairs. Identify the tax issue or issues suggested by the following situations and state each issue in the form of a question.

Sarah is a cash-method, calendar-year taxpayer, and she is considering making the following cash payments related to her business. Calculate the after-tax cost of each payment assuming she is subject to a 37 percent marginal tax rate. Note: Do not round intermediate calculation. Problem 9-54 Part-b (Algo) b. $3,800 to reimburse the cost of meals at restaurants incurred by employees while traveling for the business. Answer is complete but not entirely correct. After-tax cost S 3,097

Roxy operates a dress shop in Arlington, Virginia. Lisa, a Maryland resident, comes in for a measurement and purchases a $2,800 dress. Lisa returns to Virginia a few weeks later to pick up the dress and drive it back to her Maryland residence, where she will use the dress. Assuming that Virginia's sales tax rate is 5 percent and that Maryland's sales tax rate is 6 percent, what is Roxy's sales tax collection obligation?   Multiple Choice   $0   $140 to Virginia   $140 sales tax to Virginia and $28 use tax to Maryland   $168 to Maryland

Jenna, a longtime client of yours, is employed as an architect and is the presi-dent of the local Rotary chapter. To keep up to date with developments in her profession, she attends continuing education seminars offered by the architecture school at State University. During 2021, Jenna spends $2,000 on course tuition to attend these seminars. She spends another $400 on architecture books during the year. Jenna’s daughter, Caitlin, is a senior majoring in engineering at the University of the Midwest. During the 2021 calendar year, Caitlin incurs the following expenses: $8,200 for tuition ($4,100 per semester) and $750 for books and course materials. Caitlin, who Jenna claims as a dependent, lives at home while attending school full-time. Jenna is married, files a joint return, and reports a combined AGI with her spouse of $121,000. a. Calculate the couple’s education tax credits for 2021. b. Calculate the couple’s education tax credits if combined AGI was $162,000. c. In her capacity as…

Please answer all parts! William and Annette Johnson (both age 45) are married taxpayers who file a joint return. They have a son, Sean, age 7. During the tax year, they had the following receipts: 1 Salary ($75,000 for William, $62,000 for Annette) $137,000 2. Interest Income ·       City of Normal school bonds       $1,000 ·       Ford Motor Company bonds         1,200 ·       PNC Bank certificate of deposit       600               2,800 3. Annual gift from parents       26,000 4. Lottery winnings                                                                     1,000 5. Short-term capital loss (from stock investment)      ( 5,000) 6. Federal income tax refund from last year return        2,400 7. Child support from Annette's ex-husband        8,000 8. State income tax refund from the prior year (they used standard deduction in the prior year)           700     They also have the following facts related to their…

State whether each of the following payments is a tax. Explain your answers. To incorporate his business, Alex pays the state of Texas a $2,000 incorpora tion fee. The city paves a road and assesses each property owner on the road $4,000 for his or her share of the cost. The city of Asheville charges each residence in the city $10 per month to pick up the trash. Rory pays $450 of income tax to the state of California. Lanny is fined $45 for exceeding the speed limit.

Each of the following taxpayers purchased furniture online in September of 2022, and had it delivered to their home. Which taxpayer has correctly calculated their use tax for 2022? Chandler lives in Crook County. Her furniture cost $2,221 and was delivered to her home. She calculates that she owes $133 in use tax. Landon lives in Big Horn County and he had the furniture delivered there. His cost was $869, and he thinks his use tax is $19. Cilfford lives in Niobrara County. His furniture cost $6,449 and was delivered to his home. He has determined his use tax is $258. Samantha, who lives in Laramie County, paid $4,932 for her furniture, which was delivered to her home. She believes her use tax is $493.

In June of this year, Dr. and Mrs. Bret Spencer traveled to Denver to attend a three-day conference sponsored by the American Society of Implant Dentistry. Bret, a self-employed practicing oral surgeon, participated in scheduled technical sessions dealing with the latest developments in surgical procedures. On two days, Mrs. Spencer attended group meetings where various aspects of family tax planning were discussed. On the other day, she went sightseeing. Mrs. Spencer does not work for her husband, but she prepares their tax returns and handles the family investments. Expenses incurred in connection with the conference are summarized below. Airfare (two tickets) $2,600 Lodging (single and double occupancy are the same rate—$225 each day) 675 Meals ($370 x 3 days)* 1110 Conference registration fee (includes $120 for Family Tax Planning sessions) 580 Car rental 305 *Split equally between Dr. and Mrs. Spencer.   If an amount is zero, enter "0". If required, round…

Jackson, a head of household taxpayer, has a 20-year-old daughter, Emma, who attends the University of Minnesota full-time. During 2020, Jackson incurred the following expenses related to Emma's education: 1. Tuition and fees - $13,750 2. Textbooks - $785 3. Rent for campus apartment - $4,200 4. Campus dining plan - $2,150 5. Laptop - $3,600 6. Clothes, toiletries, transportation - $1,890 Jackson paid for Emma's living expenses out of pocket each month, but he took out a loan to cover her tuition and fees, the campus dining plan, and her laptop. During 2020, he paid a total of $895 of interest on that loan. Assuming that Jackson is not subject to an AGI limitation, how much of Emma's college expenses can Jackson deduct in 2020?

(Federal Taxation, Individual Income Taxes) Janice Morgan, age 24, is single and has no dependents.  She is a freelance writer.  In January 2019, Janice opened her own office located at 2751 Waldham Road, Pleasant Hill, NM 88135.  She called her business Writers Anonymous.  Janice is a cash basis taxpayer.  She lives at 132 Stone Avenue, Pleasant Hill, NM 88135.  Her Social Security number is 123-45-6782.  Janice's parents continue to provide health insurance for her under their policy.  Janice did not engage in any virtual currency transactions during the year and wants to contribute to the Presidential Election Campaign Fund.    During 2019, Janice reported the following income and expense items connected with her business. Income from sale of articles                                                    $85,000 Rent                                                                                                16,500 Utilities…