Ryan incurred the following expenses this year: Criminal Restitution (fine paid) for DUI arrest Bribe paid for dock permit to the County Inspector Kickback paid to obtain University of Florida football tickets from Board of Regents Member Lobby costs to promote smoking among American Minors (Ryan sells cigarette machines for a living) Political contributions to union sponsored Federal Congressman for Tobacco Industry $27,000 $1,000 $5,000 $10,000 $1,500 O Ryan may deduct $14, 700 as itemized deductions. O More than one of the above are correct. O Ryan may deduct $11,500 on his sole proprietorship schedule C. O Nothing listed here is deductible anywhere on Ryan's personal return.

Which one of the following costs is most likely NOT fully deductible? Group of answer choices Jose, a local business owner, pays $30,000 in Self-Employment taxes. Sandra owns a mini golf course. She pays her employer portion of payroll taxes because of her employees, which totals to $12,000. Travis owns a CPA firm and pays his son Joe as an associate. Joe is a CPA and is paid the same salary as the other associates. X-Corp writes off a $12,000 business debt owed by Sam because he has not responded to their numerous requests for payment.

Classify each of the following cases as "Included in" or "Excluded from" gross income. Included in/Excluded from Gross Income a. Eloise received $150,000 in the settlement of a sex discrimination case against her former employer. b. Nell received $10,000 for damages to her personal reputation. Nell also received $40,000 in punitive damages. c. Orange Corporation, an accrual-basis taxpayer, received $50,000 from a lawsuit it filed against its auditor, who overcharged for services rendered in a previous year. d. Beth received $10,000 in compensatory damages in a lawsuit she filed against a tanning parlor for severe burns she received from using the parlor's tanning equipment. Beth also received $30,000 in punitive damages in the lawsuit against the tanning parlor. e. Joanne received compensatory damages of $75,000 from a cosmetic surgeon who botched her nose job. Joanne also received $300,000 in punitive damages from the cosmetic surgeon who…

Ms. Zhao has $200,000 private activity municipal bond interest income from The City of Indianapolis. Ms. Zhao's only other income for the year is her $600,000 salary and Mr. Zhao has a $400,000 salary. Furthermore, both Ms. and Mr. Zhao, married, are 50 years old, file a joint return, have no dependents, and have $27,000 itemized deductions. Compute the Zhao's tentative minimum tax for the current year.

1. Jim paid his brother to provide computer services for Jim's business. Jim paid him $14,000. Other firms provide the same services for $5,000. How much of this expenditure is deductible? 2. XYZ landscaping sold a truck during 2021 for $15,000 recognizing a gain of $2,000. What is the adjusted basis of the truck? 3. Bill earned $50,000 from self employment during 2021. How much must he pay in self employment tax? 4. Ed commutes to work every day during 2021. He spent $3,000 in transportation. How much can he deduct for 2021?

Marvin had the following transactions: Salary   $50,000   Compensation of body injury due to car accident           15200              Bank loan (proceeds used to buy personal auto)   10,000   Alimony payment to ex-wife (divorce settled in 2018)   6,000   Child support payment   12,000   Gift from aunt Gain from sale of city of Bloomington bonds                5,000                                     20,000           Interest from City of Bloomington Bonds                           500         Interest received on the U.S. Government bonds             1,500         Interest received on corporate (GE company) bonds          350         Lottery winnings                                                                    500               Life insurance proceed after her grandmother died     150,000 Calculate Marvin’s AGI:

Thomas, a calendar year cash basis taxpayer, has the following transactions: Salary from job $50,000 Alimony paid to ex-wife (divorce after 2018) 9,000 Medical expenses 4,500 Charitable contributions 2,000 Based on this information, Thomas has: AGI of $34,500. AGI of $41,000. AGI of $50,000. Medical expense deduction of $3,075. None of the above.

14. A taxpayer was in an automobile accident while he was going to work. He was in a rehabilitation facility for ten months re-learning how to walk. The resulting lawsuit was settled, and he received the following amounts for: medical expenses lost wages emotional distress due to injuries punitive damages O $500,000 O $25,000 How much of the settlement must he include in gross income on his tax return? O $575,000 $ 120,000 75,000 O $0 25,000 500,000

Ef 449.

Morris a single taxpayer earns wages of $350,000. In tax year 2021 he also owns a sole proprietorship with $210,000 of income and $480,000 of allowed deductions ( 270,000 dollar loss). Boris has enough tax basis to cover the loss as and is considered at risk for the loss amount and he materially participates in the activity. What is the amount of excess business loss he will carry forward $10,000 $80,000 $260,000 $270,000