QUESTION 3Susie, age 47, lives with Sammy, her son. Sammy is 23 and a full time student. Susie maintained a house for herself andsupported Sammy who lived in the same home for the entire year. Sammy is employed and eamed $14,000 this year.What is the Susie's most favorable filing status for the year?MFJMFSнонQWQUESTION 4Julio earned $75,000 in salary, $2,000 of interest from municipal bonds, received $5,000 in life insurance proceeds andhad $3,000 of bank interest income during the year. Julio is not married. He had a total of $10,000 in itemized deductionsfor the year. What is the amount of Julio's taxable income for 2020?

Taxable income is the part of gross income which is taxable by the government, calculated by adding…

QUESTION 4 Julio earned $75,000 in salary, $2,000 of interest from municipal bonds, received $5,000 in life insurance proceeds and had $3,000 of bank interest income during the year. Julio is not married. He had a total of $10,000 in itemized deductions for the year. What is the amount of Julio'š taxable income for 2020?

QUESTION 4 Julio earned $75,000 in salary, $2,000 of interest from municipal bonds, received $5,000 in life insurance proceeds and had $3,000 of bank interest income during the year. Julio is not married. He had a total of $10,000 in itemized deductions for the year. What is the amount of Julio'š taxable income for 2020?

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter2: The Deduction For qualified Business Income For Pass-through Entities

Section: Chapter Questions

Problem 22P

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LO.5 Suzanne owns interests in a bagel shop, a lawn and garden store, and a convenience store. Several full-time employees work at each of the enterprises. As of the end of November of the current year, Suzanne has worked 150 hours in the bagel shop, 250 hours at the lawn and garden store, and 70 hours at the convenience store. In reviewing her financial records, you learn that she has no passive investments that are generating income and that she expects these three ventures collectively to produce a loss. What recommendation would you offer Suzanne as she plans her activities for the remainder of the year?
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