46. PR.03-17Problem 3-17Business Gifts (LO 3.9)Sam owns an insurance agency and makes the following business gifts during the year.Calculate Sam's deduction for business gifts.If an amount is zero, enter "0".AmountAmountAllowedDonee$35, plus $4 shipping $1. Ms. Sears (a client)2. Mr. Williams (a tennis partner,55not a business prospect or client)3. Mr. Sample (a client) and22Mrs. Sample (nonclient wife of Mr. Sample)204. Various customers (calendars300costing $3 each with the company name on them)5. Mr. Shiver (an employee gift,175a watch, for 25 years of continuous service)Total business gift deduction%24%24%24%24%24

Income Tax Expenses: The expenses which are related to the taxable income of the individuals and…

Answered: 46. PR.03-17 Problem 3-17 Business…

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter7: Deductions And Losses: Certain Business Expenses And Losses

Section: Chapter Questions

Problem 47P

See similar textbooks

Similar questions

LO.2 What is the taxpayers gross income in each of the following situations? a. Darrin received a salary of 50,000 from his employer, Green Construction. b. In July, Green gave Darrin an all-expense-paid trip to Las Vegas (value of 3,000) for exceeding his sales quota. c. Megan received 10,000 from her employer to help her pay medical expenses not covered by insurance. d. Blake received 15,000 from his deceased wifes employer to help him in his time of greatest need. e. Clint collected 50,000 as the beneficiary of a group term life insurance policy when his wife died. The premiums on the policy were paid by his deceased wifes employer.
Business Gifts (LO 3.9) Sam owns an insurance agency and makes the following business gifts during the year. Calculate Sam's deduction for business gifts. If an amount is zero, enter "0". Donee Amount Amount Allowed 1. Ms. Sears (a client) $35, plus $4 shipping $ 2. Mr. Williams (a tennis partner,not a business prospect or client) 55 3. Mr. Sample (a client) andMrs. Sample (nonclient wife of Mr. Sample) 2220 4. Various customers (calendarscosting $3 each with the company name on them) 300 5. Mr. Shiver (an employee gift,a watch, for 25 years of continuous service) 175 Total business gift deduction $ How do you do this?
Sam owns an insurance agency and makes the following business gifts during the year. Calculate Sam's deduction for business gifts. If an amount is zero, enter "0". Donee Amount Amount Allowed 1. Ms. Sears (a client) $35, plus $4 shipping $ 2. Mr. Williams (a tennis partner, not a business prospect or client) 55 3. Mr. Sample (a client) and Mrs. Sample (nonclient wife of Mr. Sample) 22 20 4. Various customers (calendars costing $3 each with the company name on them) 300 5. Mr. Shiver (an employee gift, a watch, for 25 years of continuous service) 175 Total business gift deduction
Ralph made the following business gifts during the year To Robert (a key client) at Christmas: $50 To Angel (Robert’s 8-year old daughter) on her birthday: $20 To Art (Ralph’s secretary) on his birthday ($3 was for gift wrapping): $30 To Paige (Ralph’s boss) at Christmas: $40 Presuming proper substantiation, Ralph’s deduction is: A. $0 B. $53 C. $73 D. $78
11.Bonnie owns a hardware store. During the year, Bonnie gives business gifts having the indicated costs to the following individuals: Mrs. Johnson (a customer) $37 plus $3 for shipping. Mr. Johnson, (non client husband of Mrs. Johnson) $10 Ms. Doncan (a customer) $22 What is the amount of Bonnie's deduction for business gifts?
1. Label each item as Gross Income, (GI), Not Included, (NI) or Deductions for Adjusted Gross Income, (DAGI), and calculate adjusted gross income for Noelle Nelson. A gift from her mother Nia, $30,000 Noelle has a sole proprietorship, candy shop. The net income is $120,000 Salary $100,000. Bonus $40,000 Capital loss $20,000 Contribution to individual retirement account, $1,000 Child support received, $30,000 Alimony received $50,000. The divorce was signed on January 15, 2018. Noele won $20,000 in a national bowling tournament. Noelle received $20,000 from a legal settlement for a dog bite on her leg. Student loan interest paid $1,000. Noelle’s sister, Natasha, gave her $40,000, in repayment of a $35,000 loan from 2017. Workman’s compensation $30,000 Unemployment compensation $40,000 Interest from a City of Nashville Bond, $7,000 Treasury bill interest $10,000 Interest from CitiGroup Account $5,000 Penalty for early withdrawal from timed savings…
Marco makes the following business gifts during the year: Miss Scarlett (a potential client) $30 Mr. and Mrs. White (both are clients) $40 Professor Plum (a client) $18 Mrs. Plum (the nonclient wife of Professor Plum) $12 Charles Mustard (Marco’s boss) $27 Marco also spent $15 on wrapping paper and a card for the above gift to the Whites.Calculate Marco’s total allowed deduction for gifts
B6 Which of the following taxpayers will have an adjustment on their Schedule CA (540), Part I, Section A, line 1? Abdul earned $40,000 of wages while working at the local pharmacy. Dana won $2,000 from the California Lottery. Milo cashed U.S. Savings Bonds yielding $300 of interest. Sasha received ridesharing fringe benefits that were excluded from income on her federal return.
Charlie, a self-employed financial planner, had the following expenses in 2021 in the following amounts: Gift To Haley, Charlie's professional assistant $36 Gift To Darryl (a key client, includes $3 for gift wrapping) 28 Gift To Darryl's daughter for her graduation (not a client) 20 Gift To Veronica, Charlie's personal hair stylist 30 In addition, Charlie took Haley to lunch at a local restaurant on administrative professional's day 62 Assuming that Charlie has adequate substantiation, how much can he deduct? Please show calculations or explanation.
During the current year holiday season, Bob, a barber, gave business gifts to 34 customers. The values of the gifts, which were not of a promotional nature, were as follows:10 at $10 each8 at $25 each8 at $50 each8 at $100 eachFor the current year, what is the amount of Bob's business gift deduction? a.$700 b.$0 c.$850 d.$1,500 e.None of these choices are correct.
LO.2 Emma Doyle is employed as a corporate attorney. For calendar year 2020, she had AGI of $75,000 and paid the following medical expenses: Medical insurance premiums $3,700 Doctor and dentist bills for Bob and April (Emma’s parents) 6,800 Doctor and dentist bills for Emma 5,200 Prescription medicines for Emma 400 Nonprescription insulin for Emma 350 Bob and April would qualify as Emma’s dependents except that they file a joint return. Emma’s medical insurance policy does not cover them. Emma filed a claim for reimbursement of $2,800 of her own expenses with her insurance company in December 2020 and received the reimbursement in January 2021. What is Emma’s maximum allowable medical expense deduction for 2020? Prepare a memo for your firm’s tax files in which you document your conclusions.

Recommended textbooks for you

SWFT Individual Income Taxes

Accounting

ISBN:

9780357391365

Author:

YOUNG

Publisher:

Cengage

CONCEPTS IN FED.TAX., 2020-W/ACCESS

Accounting

ISBN:

9780357110362

Author:

Murphy

Publisher:

CENGAGE L

PFIN (with PFIN Online, 1 term (6 months) Printed…

Finance

ISBN:

9781337117005

Author:

Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:

Cengage Learning

SWFT Individual Income Taxes

Accounting

ISBN:

9780357391365

Author:

YOUNG

Publisher:

Cengage

CONCEPTS IN FED.TAX., 2020-W/ACCESS

Accounting

ISBN:

9780357110362

Author:

Murphy

Publisher:

CENGAGE L

PFIN (with PFIN Online, 1 term (6 months) Printed…

Finance

ISBN:

9781337117005

Author:

Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:

Cengage Learning

Individual Income Taxes

Accounting

ISBN:

9780357109731

Author:

Hoffman

Publisher:

CENGAGE LEARNING - CONSIGNMENT

SWFT Comprehensive Vol 2020

Accounting

ISBN:

9780357391723

Author:

Maloney

Publisher:

Cengage

SWFT Comprehensive Volume 2019

Accounting

ISBN:

9780357233306

Author:

Maloney

Publisher:

Cengage

SEE MORE TEXTBOOKS