As a real estate salesman, Fred earned a base salary of $8,000 and received commissions of $7,000. In relation to his realestate work, he incurred the following expenses:Dues to a local real estate associationFee for a three-day seminar on how to be an effectivesalespersonAdvertising-calendars and pensAutomobile operating costsPromotion (meals and drinks for clients)Personal meals (during in-town business)$4003,0001,7004,0002,800400Purchase of a cellhoneFred used his own automobile for his real estate activities. The car has an undepreciated capital cost for tax purposes of$10,000. During the year, he drove a total of 30,000 km, of which 27,000 was related to selling real estate. His employerprovided him with a monthly car allowance of $200 ($2,400 per year).600Required:Determine the expenses that Fred may claim from his real estate sales income.

Origins and Initial Appeal:The utilization of car allowances in the United States dates back to the…

As a real estate salesman, Fred earned a base salary of $8,000 and received commissions of $7,000. In relation to his real estate work, he incurred the following expenses: Dues to a local real estate association Fee for a three-day seminar on how to be an effective salesperson Advertising-calendars and pens Automobile operating costs Promotion (meals and drinks for clients) Personal meals (during in-town business) Purchase of a cellhone $ 400 3,000 1,700 4,000 2,800 400 600 Fred used his own automobile for his real estate activities. The car has an undepreciated capital cost for tax purposes of $10,000. During the year, he drove a total of 30,000 km, of which 27,000 was related to selling real estate. His employer provided him with a monthly car allowance of $200 ($2,400 per year). Required: Determine the expenses that Fred may claim from his real estate sales income.

As a real estate salesman, Fred earned a base salary of $8,000 and received commissions of $7,000. In relation to his real estate work, he incurred the following expenses: Dues to a local real estate association Fee for a three-day seminar on how to be an effective salesperson Advertising-calendars and pens Automobile operating costs Promotion (meals and drinks for clients) Personal meals (during in-town business) Purchase of a cellhone $ 400 3,000 1,700 4,000 2,800 400 600 Fred used his own automobile for his real estate activities. The car has an undepreciated capital cost for tax purposes of $10,000. During the year, he drove a total of 30,000 km, of which 27,000 was related to selling real estate. His employer provided him with a monthly car allowance of $200 ($2,400 per year). Required: Determine the expenses that Fred may claim from his real estate sales income.

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

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter6: Business Expenses

Section: Chapter Questions

Problem 25P

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