equipment under $179 or bonus. On December 15, 2021, he sells the equipment. What is his cost recovery deduction for 2021?
Q: Sonny receives wages of $47,900 and $10,000 of unemployment in 2021
A: As per Income tax act 1961 (indian no any other deatial given for other country tax that why)
Q: During 2020,William purchases the following capital assets for use in his catering business:New…
A: MACRS Method - The full form of MACRS is Modified Accelerated Cost Recovery System. It is a…
Q: Taxpayer A secured employment as a commissioned salesman in July 2020. In 2020, they received a base…
A: Driving cost: Fuel 4000 insurance 3150 License 250 Leasing cost [700*12] 4200 Total…
Q: During 2020, William purchases the following capital assets for use in his catering business: New…
A: Depreciation: The word "depreciation" refers to an accounting procedure that is used to spread the…
Q: A taxpayer received a notice from the BIR to file his 2020 income tax return not later than January…
A: solution concept provision The interest penalty is levied @ 20% pa of the tax due after April 15 of…
Q: A taxpayer filed his income tax return in October 28, 2018. The deadline for the return was April…
A: solution concept as per the income tax provision stated by BIR In case if a person fails to file…
Q: On January 3, 2019, Carey discovers his diamond bracelet has been stolen. The bracelet had a fair…
A: In order to avail deduction in regard to causality loss on personal property, the assessee is…
Q: McKenzie purchased qualifying equipment for his business that cost $212,000 in 2021. The taxable…
A: Deduction- A deduction is an outflow that can be deducted from a taxpayer's gross income in order to…
Q: In 2021, Ben purchases and places in service a new auto for his business. The auto costs $57,000 and…
A: Introduction Section 179 allows tax payers to expense the acquisition cost of certain properties,…
Q: In 2018, Ronnie Alonte received from his employer a promissory note with a face value of P 50,000…
A: Notes Receivable Notes receivable which are received in the form of services which are provided to…
Q: A taxpayer buys a new cash register for $1,300 in January 2021. This is the only asset purcha in…
A: Cash register is an office equipment hence would be classified under 7 year- 200% asset class. Also…
Q: Can I exclude my unemployment compensation from my 2021 tax return? Wages of $11,00 during first…
A: The state pays unemployment compensation to jobless workers who have terminated their work due to…
Q: Ascertain the value of the taxable benefit.
A: Taxable value of the benefit which the employee has received from the employer during the year is…
Q: John purchases a new car in 2021 for a price fo $37.000. If he claims 100-percent bonus…
A: The bonus depreciation is an tax insentive that allows a business to claim large amount of…
Q: A taxpayer filed his income tax return in October 28, 2022. The deadline for the return was April…
A: solution concept as per the income tax provision stated by BIR in event when a person fails to file…
Q: Carla earns 137,100 from January through November 2020, before resigning to work for a new employer…
A: Rules: 1. 6.2% Social Security tax, withheld from the first $137,700 an employee makes in 2020 2.…
Q: Spring's office building is destroyed by fire on July 12, 2020. The adjusted basis is $315,000. He…
A: Recognized gain: Generally, it is the gain earned on selling the asset. It is determined as the…
Q: The taxable income of Jenny for first week of January 2021 was R3 220. She did not earn overtime pay…
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: 30. On July 1, 2021, Mr. Lancelot borrowed P10,000 at 6% interest from ABC Loan Company, Inc. for…
A: The revenues and expense are reported on the income statement when they are earned and incurred,…
Q: Mr. A, a minimum wage earner sales agent, received the following from his employer for the year…
A: As per the provisions of BIR as well as amendment by TRAINs Law , 13th…
Q: In 2020, Ben purchases and places in service a new auto (not a luxury auto) for his business. The…
A: The depreciation limit under Sec. 280F(d)(7) is $10,100 for the first tax year; $16,100 for the…
Q: Gina, a real estate dealer sold a house and lot for P600,000 on November 20, 2018. The cost of the…
A: Income Tax: Any individual earn income by using the country's resources then he or she will be…
Q: Rem was retired by his employer corporation in 2020 and was paid P1,000,000 as a retirement gratuity…
A: An individual's gross income (sometimes known as gross pay on a paycheck) is their total earnings…
Q: B is a newly hired employee (November 2021) and has a monthly compensation package of a basic pay…
A: The current SSS contribution rate is 13% of the monthly salary credit not exceeding P25,000 and this…
Q: During 2020, Ms. Sunshine has net employment income of $95,000 after claiming her RPP deduction of…
A: A registered pension plan (RPP) is a pension plan that your firm has formed and registered with the…
Q: 8. James earned $55,000 of net earnings from a tax preparation business that he runs during tax…
A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…
Q: On July 17, 2019, TP purchases office furniture (7-year property) costing $50,000 for use in her…
A: Given information: Cost of the office furniture $50,000 Section 179 depreciation Deduction…
Q: On July 17, 2019, Ari purchases office furniture (7-year property) costing $50,000 for use in her…
A: Given information: Cost of the office furniture $50,000 Section 179 depreciation Deduction…
Q: In 2020, Susan (who files as single) had silverware worth $10,000 (basis $6,000) stolen from her…
A: Deductions on account of casualty losses such as theft are deductible if caused by federally…
Q: ses a rental house on July 2
A: Generally, depreciation of assets has to be calculated and it will reduce the cost of assets. Assets…
Q: Rahima works at Grameen phone and her current salary is 32,000 taka per month on July 1, 2020. She…
A: This question deals with the calculation of salary for the income year and tax liability…
Q: In 2021, Ben purchases and places in service a new auto for his business. The auto costs $57,000 and…
A: Depreciation is the amount that is charged on the fixed assets and by which the asset value…
Q: On January 3, 2019, Carey discovers his diamond bracelet has been stolen. The bracelet had a fair…
A: Given that: Fair market value and adjusted basis = $8100 Adjusted Gross Income = $54000
Q: A taxpayer pays $2,400 in points when taking out a 15-year loan to buy a vacation home. If the…
A: The word point is used to describe such costs charged in order to secure a home mortgage. The point…
Q: taxpayer received a notice from the BIR to file his 2019 income tax return not later than January…
A: Taxpayers are allowed for deductions of investment expenses and miscellaneous itemized deductions…
Q: In December 2020, Ryan paid $31,230 for an insurance policy that covers his business property for…
A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Mr. Ramos earns purely compensation income for the year 2021 with an annual basic salary of…
A: Non taxable income is equivalent to Government mandatory contribution amounting Php21900 which is…
Q: On April 23, 2019, Bailey purchased an automobile for $25,000. The car is used 80% for business and…
A: Cost recovery refers to the deduction of a portion of the cost of an asset, used in a business or…
Q: During 2019, Greg Cruz (1401 Orangedale Road, Troy, MI 48084) works for Maple Corporation and Gray…
A: FICA is termed as Federal Insurance contribution act, which is a United States payroll tax and it is…
Q: On February 2, 2019, Alexandra purchases a personal computer. The computer cost $1,800. Alexandra…
A: Given: Cost of computer = $1,800 85% for business use, and 15% for personal use.
Q: In 2020, Joan Cannon incurred the following expenses relating to her vacation home: Mortgage…
A: Tax: It is the amount which has to be paid by the individual and the corporation to the Federal…
Q: During 2019, Matti Conner, president of Maggert Company, was paid a semimonthly salary of $6,000.…
A: Hi student Since there are multiple subparts, we will answer only first three subparts.
Q: For his business, McKenzie purchased qualifying equipment that cost $212,000 in 2019. The taxable…
A: § 179 expense deduction allows deduction for the purchase of qualifying assets. The limit was…
Q: respectively.) Leonard earned $35,000 at the new location. The maximum deduction that Leonard can…
A: Deduction is the amount which is claimed by the taxpayer during the year and through which the…
Q: During 2019, Jeff Smallwood worked for two different employers. Until May, he worked for Rowland…
A: Taxes refers to the amount charged by the government from the individual and organizations on the…
Q: Diana purchases commercial property for $600,000 and furniture and fixtures for $1,000,000. The…
A: Total depreciation deduction that Diana may take on her 2020 tax return are as follows
Q: A taxpayer filed his income tax return on June 30, 2019. The deadline for the return was April 15,…
A: Taxable Income:- It is the income on which one pays tax as per rate prescribed by the taxation…
Q: In 2019, Muhammad purchased a new computer for $16,000. The computer isused 100% for business.…
A: The performance of the assets purchased by the company will reduce each year. To record this…
Q: Xavier bought furniture and fixtures (7-year property) on September 15, 2019 for $1,025,000. He…
A: given that, Xavier bought furniture and fixtures (7-year property) on September 15, 2019 for…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- On July 20,2019, Kelli purchases office equipment at a cost of $12,000. Kelli elects out of bonus depreciation but makes the election to expense for 2019. She is selfemployed as an attorney, and, in 2019, her business has a net income of $6,000 before considering this election to expense. Kelli has no other income or expenses for the year. What is the maximum amount that Kelli may deduct for 2019 under the election to expense, assuming she elects to expense the entire $12,000 purchase? $24,000 $12,000 $6,000 $3,000 $1,000Joy incurs the following expenses in her business. When can she deduct the expenses if she uses the accrual method of accounting? the cash method? a. Joy rents an office building for 750 a month. Because of a cash flow problem, she is unable to pay the rent for November and December 2019. On January 5, 2019, Joy pays the 2,250 rent due for November, December, and January. b. Joy borrows 60,000 on a 1-year note on October 1, 2019. To get the loan, she has to prepay 6,200 in interest. c. Joy owes employees accrued wages totaling 20,000 as of December 31, 2019. The accrued wages are paid in the regular payroll on January 5, 2020. d. Joy purchases 2,400 worth of supplies from a local vendor. The supplies are delivered on January 29, 2019. They are fully used up on December 30, 2019. Because of unusual circumstances, a bill for the supplies arrives from the vendor on January 10, 2020, and is promptly paid. e. While at a trade convention, Joy purchases some pens and paperweights to send out as holiday gifts to her clients. She charges the 700 cost to her credit card in December 2019. She pays the credit card bill in January 2020.Shanna, a calendar year and cash basis taxpayer, rents property to be used in her business from Janice. As part of the rental agreement, Shanna pays 8,400 rent on April 1, 2019, for the 12 months ending March 31, 2020. a. How much is Shannas deduction for rent expense in 2019? b. Assume the same facts, except that the 8,400 is for 24 months rent ending March 31, 2021. How much is Shannas deduction for rent expense in 2019?