Rebecca is a doctor with an AGI of $125,000 before consideration of income or loss from her dog breeding business. Her home is on 15 acres, 10 of which she uses to house the animals and provide them with ample space to play and exercise. Her records show the following related income and expenses for the current year: Income from fees and sales Expenses: Dog food Veterinary bills Supplies Publications and dues $ 2,500 $ 4,000 3,500 1,200 350 Required: a. How must Rebecca treat the income and expenses of the operation if the dog breeding business is held to be a hobby? Note: Leave no cells blank. Enter "0" wherever required. b. How would your answer differ if the operation were held to be a business? Note: Leave no cells blank. Enter "0" wherever required. Enter all losses with a minus sign. Answer is not complete. a. Schedule C Business income/(loss) a. Other Income/(loss) a. Expenses - (Schedule A) b. Schedule C Business income/(loss) b. Other Income/(loss) b. Expenses - (Schedule A) 3
Rebecca is a doctor with an AGI of $125,000 before consideration of income or loss from her dog breeding business. Her home is on 15 acres, 10 of which she uses to house the animals and provide them with ample space to play and exercise. Her records show the following related income and expenses for the current year: Income from fees and sales Expenses: Dog food Veterinary bills Supplies Publications and dues $ 2,500 $ 4,000 3,500 1,200 350 Required: a. How must Rebecca treat the income and expenses of the operation if the dog breeding business is held to be a hobby? Note: Leave no cells blank. Enter "0" wherever required. b. How would your answer differ if the operation were held to be a business? Note: Leave no cells blank. Enter "0" wherever required. Enter all losses with a minus sign. Answer is not complete. a. Schedule C Business income/(loss) a. Other Income/(loss) a. Expenses - (Schedule A) b. Schedule C Business income/(loss) b. Other Income/(loss) b. Expenses - (Schedule A) 3
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter11: Individuals As Employees And Proprietors
Section: Chapter Questions
Problem 35P
Related questions
Question
![In 2022, Landon has self-employment earnings of $195,000.
Required:
Compute Landon's self-employment tax liability and the allowable income tax deduction of the self-employment tax paid.
Note: Round your intermediate computations and final answers to the nearest whole dollar value.
Total self-employment tax liability
Self-employment tax deduction
Amounts](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6b0e48fb-2c03-4cd4-ad19-cc0211c37c23%2Fa0c4853c-4d6b-482f-9026-7091dc2b7597%2Fmwjlzuw_processed.png&w=3840&q=75)
Transcribed Image Text:In 2022, Landon has self-employment earnings of $195,000.
Required:
Compute Landon's self-employment tax liability and the allowable income tax deduction of the self-employment tax paid.
Note: Round your intermediate computations and final answers to the nearest whole dollar value.
Total self-employment tax liability
Self-employment tax deduction
Amounts
![Rebecca is a doctor with an AGI of $125,000 before consideration of income or loss from her dog breeding business. Her home is on
15 acres, 10 of which she uses to house the animals and provide them with ample space to play and exercise. Her records show the
following related income and expenses for the current year:
Income from fees and sales
Expenses:
Dog food
Veterinary bills.
Supplies
Publications and dues
$ 2,500
$ 4,000
3,500
1,200
350
Required:
a. How must Rebecca treat the income and expenses of the operation if the dog breeding business is held to be a hobby?
Note: Leave no cells blank. Enter "0" wherever required.
b. How would your answer differ if the operation were held to be a business?
Note: Leave no cells blank. Enter "0" wherever required. Enter all losses with a minus sign.
X Answer is not complete.
a. Schedule C Business income/(loss)
a. Other Income/(loss)
a. Expenses - (Schedule A)
b. Schedule C Business income/(loss)
b. Other Income/(loss)
b. Expenses - (Schedule A)
0✔](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6b0e48fb-2c03-4cd4-ad19-cc0211c37c23%2Fa0c4853c-4d6b-482f-9026-7091dc2b7597%2Fs58bpfr_processed.png&w=3840&q=75)
Transcribed Image Text:Rebecca is a doctor with an AGI of $125,000 before consideration of income or loss from her dog breeding business. Her home is on
15 acres, 10 of which she uses to house the animals and provide them with ample space to play and exercise. Her records show the
following related income and expenses for the current year:
Income from fees and sales
Expenses:
Dog food
Veterinary bills.
Supplies
Publications and dues
$ 2,500
$ 4,000
3,500
1,200
350
Required:
a. How must Rebecca treat the income and expenses of the operation if the dog breeding business is held to be a hobby?
Note: Leave no cells blank. Enter "0" wherever required.
b. How would your answer differ if the operation were held to be a business?
Note: Leave no cells blank. Enter "0" wherever required. Enter all losses with a minus sign.
X Answer is not complete.
a. Schedule C Business income/(loss)
a. Other Income/(loss)
a. Expenses - (Schedule A)
b. Schedule C Business income/(loss)
b. Other Income/(loss)
b. Expenses - (Schedule A)
0✔
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