Show calculations - You work as a sales representative for a company and earn$10,000 in commissions during 2020. Your home office is in a 375 square foot den.Your house is 1,500 square feet. How much are you allowed to deduct if your total costsfor 2020 were as follows:$24,000900Mortgage payments (40% principal, 60% interest)Home insuranceOffice suppliesUtilitiesInternetRoof repairProperty taxLong distance telephone – work related3751,5007508005,000250A) $2,675.B) $3,600.C) $5,075.D) $1,475.E) $1,827. Part 1 (ITA 3)Division B Net Income to Division C Taxable Income to Taxes Payable for IndividualsITА 3(a)+ Bin #1- Net Employment - losses carry forward 20 years and carry back 3 years (carrying baskets)+ Bin # 2 - Net Business & Property – losses carry forward 20 years and carry back 3 years (carrying baskets)+ Bin # 4 - Other IncomeITА 3 (b)+ Bin # 3 – Net Capital – losses carry forward for infinity and carry back 3 years (carrying basket)IТА З (c)- Bin # 5 - Other Deductions= Sources of IncomeITA 3 (d)Losses in current year from Bins 1, 2, 4= Division B Net IncomeEquivalent to Capital Gains Deduction for Employee Stock OptionsITA 110Payments included to calculation Division B but not included for Division C (e.g. social assistance)- Losses from other years (carrying baskets Bin #1 & 2)ITA 111Losses from other years (carrying basket Bin #3 limited to Net Capital Income included in ITA 3 (b)= Division C Taxable Incomex Applicable Tax RatesΙΤΑ 118Tax Credits= Division E Taxes Payable for Individuals

Sales commission refers to a fee paid to an individual or an employee as pre decided with the…

Show calculations - You work as a sales representative for a company and earn $10,000 in commissions during 2020. Your home office is in a 375 square foot den. Your house is 1,500 square feet. How much are you allowed to deduct if your total costs for 2020 were as follows: Mortgage payments (40% principal, 60% interest) Home insurance $24,000 900 375 Office supplies Utilities 1,500 750 Internet Roof repair Property tax Long distance telephone – work related 800 5,000 250

Show calculations - You work as a sales representative for a company and earn $10,000 in commissions during 2020. Your home office is in a 375 square foot den. Your house is 1,500 square feet. How much are you allowed to deduct if your total costs for 2020 were as follows: Mortgage payments (40% principal, 60% interest) Home insurance $24,000 900 375 Office supplies Utilities 1,500 750 Internet Roof repair Property tax Long distance telephone – work related 800 5,000 250

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

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter5: Introduction To Business Expenses

Section: Chapter Questions

Problem 63P

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