TAXATION OF INDIVIDUALS+BUSINESS ENT.>C
TAXATION OF INDIVIDUALS+BUSINESS ENT.>C
20th Edition
ISBN: 9781307520422
Author: SPILKER
Publisher: MCG/CREATE
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Chapter 6, Problem 31P
To determine

Indicate (1) the amount deductible for AGI, (2) the amount of deductible from AGI, and (3) the amount of deductible neither deductible for nor deductible from AGI before considering income limitations or the standard deduction for the given situation.

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Required information [The following information applies to the questions displayed below.] In January of year 0, Justin paid $8,800 for an insurance policy that covers his business property for accidents and casualties. Justin is a calendar-year taxpayer who uses the cash method of accounting. What amount of the insurance premium may Justin deduct in year O in each of the following alternative scenarios? Note: Leave no answers blank. Enter zero if applicable. d. Instead of paying an insurance premium, Justin pays $8,800 to rent his business property from April 1 of year 0 throug March 31 of year 1. Deductible amount
In January of year 0, Justin paid $9,400 for an insurance policy that covers his business property for accidents and casualties. Justin is a calendar-year taxpayer who uses the cash method of accounting. What amount of the insurance premium may Justin deduct in year 0 in each of the following alternative scenarios? Note: Leave no answers blank. Enter zero if applicable. a. The policy covers the business property from April 1 of year 0 through March 31 of year 1. b. The policy begins on February 1 of year 1 and extends through January 31 of year 2. c. Justin pays $10,600 for a 24-month policy that covers the business from April 1, year 0, through March 31, year 2. Note: Do not round intermediate calculations. d. Instead of paying an insurance premium, Justin pays $9,400 to rent his business property from April 1 of year 0 through March 31 of year 1.
Please answer all parts (a, b, c, and d) Indicate the amount (if any) that Josh can deduct as an ordinary and necessary business deduction in each of the following situations. (Leave no answers blank. Enter zero if applicable.) Problem 9-47 Part-a (Algo)a. Josh borrowed $83,000 from First State Bank using his business assets as collateral. He used the money to buy City of Blanksville bonds. Over the course of a year, Josh paid interest of $12,000 on the borrowed funds, but he received $11,600 of interest on the bonds. Deductible amount__ b. Josh purchased a piece of land for $85,500 in order to get a location to expand his business. He also paid $7,000 to construct a new driveway for access to the property. Deductible amount__ c. This year Josh paid $18,200 to employ the mayor’s son in the business. Josh would typically pay an employee with these responsibilities about $15,400, but the mayor assured Josh that after his son was hired, some city business would be coming his way.…

Chapter 6 Solutions

TAXATION OF INDIVIDUALS+BUSINESS ENT.>C

Ch. 6 - Prob. 11DQCh. 6 - Prob. 12DQCh. 6 - Prob. 13DQCh. 6 - Prob. 14DQCh. 6 - Jake is a retired jockey who takes monthly trips...Ch. 6 - Frank paid 3,700 in fees for an accountant to...Ch. 6 - Contrast ceiling and floor limitations, and...Ch. 6 - Prob. 18DQCh. 6 - Prob. 19DQCh. 6 - Explain how the standard deduction is rationalized...Ch. 6 - Prob. 21DQCh. 6 - Prob. 22DQCh. 6 - Prob. 23DQCh. 6 - Prob. 24PCh. 6 - Don Juan, a single taxpayer, is the sole owner of...Ch. 6 - Prob. 26PCh. 6 - Prob. 27PCh. 6 - Prob. 28PCh. 6 - Lionel is an unmarried law student at State...Ch. 6 - Prob. 30PCh. 6 - Prob. 31PCh. 6 - In each of the following independent cases,...Ch. 6 - Prob. 33PCh. 6 - Prob. 34PCh. 6 - This year Tim is age 45 and is considering...Ch. 6 - Doctor Bones prescribed physical therapy in a pool...Ch. 6 - Charles has AGI of 50,000 and has made the...Ch. 6 - Prob. 38PCh. 6 - Prob. 39PCh. 6 - This year Randy paid 28,000 of interest. (Randy...Ch. 6 - This year, Major Healy paid 40,000 of interest on...Ch. 6 - Prob. 42PCh. 6 - Calvin reviewed his cancelled checks and receipts...Ch. 6 - Prob. 44PCh. 6 - Prob. 45PCh. 6 - Prob. 46PCh. 6 - Prob. 47PCh. 6 - Stephanie is 12 years old and often assists...Ch. 6 - Roquan, a single taxpayer, is an attorney and...Ch. 6 - Prob. 50PCh. 6 - This year Evan graduated from college and took a...Ch. 6 - Read the following letter and help Shady Slim with...Ch. 6 - Jeremy and Alyssa Johnson have been married for...Ch. 6 - Prob. 54CPCh. 6 - Joe and Jessie are married and have one dependent...
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