Answered: What is Ann's home office deduction?

Business

Accounting

What is Ann's home office deduction?

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter6: Deductions And Losses: In General

Section: Chapter Questions

Problem 35P

See similar textbooks

Related questions

Q: Nitai, who is single and has no dependents, was planning on spending the weekend repairing his car.…

A: Tax is the liability which has to be paid by the individual and the corporation to the Federal…

Q: Alice is a high school teacher who enjoys knitting. She knits scarves and sweaters and sells them in…

A: Net income or net loss is computed subtracting the aggregate revenues from total expenses for the…

Q: Does the taxpayer recognize gross income in the following situations? a. Ava is a filing clerk at…

A: Taxable Fringe Benefit = Amount required to be paid to an unrelated restaurant - Amount actually…

Q: Wilhelm has just completed his PhD. Although, he was in the workforce several years ago, Wilhelm…

A: Here discuss about the details of the most tax effective strategies which are used for Wilhelm for…

Q: Danny owns an electronics outlet in Dallas. This year, he paid $610 to register for a four-day…

A: Travel expenses that can be deductible as business expenses seem to be those that are spent for the…

Q: starts

A: As specified in the question Charles and Stephanie sign a contract for the project which is settled…

Q: Randi qualifies for a home deduction. The amount of space devoted to business use is 400 square feet…

A: The simplified method helps to enter the tax-free part of any annuity payout. Divide the expenses…

Q: Randy is advised by his physician to install an elevator in his residence, since he is afflicted…

A: Deductible medical expense for i) self, ii) spouse and iii) dependents Costs to install medically…

Q: Nitai, who is single and has no dependents, was planning on spending the weekend repairing his car.…

A: Opportunity cost can be defined as the loss of what is given up when choosing the alternative over…

Q: Jonathan placed his new car in service on January 1 of the current year. He drove it 15,000 miles in…

A: As per Federal income tax if expense are incurred partly for business and partly for Personal…

Q: Danny owns an electronics outlet in Dallas. In 2021, he paid $620 to register for a four-day course…

A: A cost is a reduction in the asset's value as a result of its use to generate income. Depreciation…

Q: Mickey is a 12-year-old dialysis patient. Three times a week for the entire year, he and his mother,…

A: The medical Mileage Rate for 2020 is $17 cents per mile driven.

Q: ax provided she opted to use the graduate rate?

A: Pay as you earn system or tax deduction at source in some countries are the advance tax payment…

Q: Art is a self-employed installer of home entertainment systems, and he drives his car frequently to…

A: Actual cost method: Asset can be used for office purpose and personal use. Consider the cost only up…

Q: Meg and James Rashev were both employed full-time during the year. The Rashevs have four children:…

A: The child care expense is available for deduction up to 50% (20-30%) of those expenses being…

Q: Jasmine Fleur, an interior decorator living at 514 West Street, Cincinnati, OH 45999 has two…

A: In USA there is no tax on inheritance on cash , investment and property as…

Q: Candace uses an office in her home exclusively for her business. The business use of the home is 100…

A: Home office deduction should be proportionate to the area that is used for business purpose.

Q: To support herself while attending school, Daun Deloch sold stereo systems to other students. During…

A: Answer: Income Statement Revenue from operations Sales from stereo…

Q: Fauzana owns a business that makes and sells pets During the financial year ended 31 July 2020, she…

A: Capital expenditure: It is the amount of funds invested in the business to get long-term benefits to…

Q: Randy is advised by his physician to install an elevator in his residence, since he is afficted with…

A: Treatment of Capital Expenses in Taxation:- If any Capital expenses(Capital assets) have incurred…

Q: Ann is a self-employed restaurant critic who does her work exclusively from a home office. Ann's…

A: Rent $6000/1000 x 200 = $1200 Utiilties = $1000 /2 = $500 insurance = $ 200 /2 = $100 Maintanence =…

Q: June uses her personal car for work as an employee. For the year, June drove 5,000 business miles…

A: In the actual method expenses related to the business use of a car are expensed based on the…

Q: Jim, a self-employed individual, takes an important customer to the hockey playoffs. Although the…

A: Answer:- Expenses definition:- An expenses can be defined as any thing that requires the payment of…

Q: Harry has worked at a medium-size interior design firm for five years and earns a salary of $4,080…

A: 1. Fair market value is the price at which a buyer is ready to purchase the product or service. Fair…

Q: I am having issues with medical expenses deduction and credits. With medical expenses wrong, it…

A: Gifts are not taxable if received from any blood relative Thus, gift received is not taxable.…

Q: Josh is an employee of a large Accounting firm in the city earning $120,000 per year. On weekends,…

A: Definition: Income is the earnings of the individual or business entity by conducting the business…

Q: LaMont works for a company in downtown Chicago. The company encourages employees to use public…

A: Here the employer provides some fringe benefit to their employees and these benefits should be…

Q: Dharka is a 22 year-old single male who is attending community college in a city that is 100 km from…

A: Budget Budget means to evaluate the total incomes and expenses which incurred in a stipulated period…

Q: What amount can Melanie claim this year for her office in the home deduction under the Regular…

A: Information Provided: Real Property Taxes = $3600 Interest on home mortgage = $3800 Operating exp =…

Q: Cindy, who is self-employed, maintains an office in her home that comprises 12% (260 square feet) of…

A: WORKING : 1. Business occupancy space= 260 Sq. ft. (12%) 2. Gross income= $ 45,650 3. Rent…

Q: Amanda is a self-employed newspaper columnist who does her work exclusively from a home office.…

A: Taxation-Taxation means imposing a tax on individuals and different types of organizations. Which…

Q: Cindy, who is self-employed, maintains an office in her home that comprises 20% (390 square feet) of…

A: Home Office Deduction: When one is using his or her home also in the business, hence one can be…

Q: paid $250 for meals, all of which were provided by the hotel’s restaurant. Bob also purchased a $6…

A: Schedule C Schedule C is the most popular tax form used by sole proprietors. The title "Profit or…

Q: On February 22020, Alexandra purchases a personal computer. The computer cost $2,200. Alexandra uses…

A: An asset is initially recognised at the original cost of acquisition. The cost of the asset is…

Q: Grace is a self-employed sales consultant who spends significant time entertaining potential…

A: Income Tax: Income tax is a direct tax which is paid by the taxpayer depending on his level of…

Q: To support herself while attending school, Daun Deloch sold stereo systems to other students. During…

A: The estimated warranty expense is recorded as warranty liability on the basis of past experience for…

Q: Samantha moved from Regina to Winnipeg to work at Red River College. Her moving expenses included…

A: Moving allowances - It includes all such expenses which is incur for moving of household goods and…

Q: Ginny is an accountant by trade, she paid $1,000 each year to join as CPA member. She also has a…

A: Tax: It is the liability imposed by government that arises on the income of individual corporation…

Q: four years. She receives $1,200 of alimony payments each month from her former husband (divorced in…

A: Income tax refers to the mandatory percentile tax imposed by the authoritative government over the…

Q: single and has to relocate in order to begin a new job. She travels 400 kilometers closer to her new…

A: Explanation of the concept Relocation expenses are the expenses which have been incurred for…

Q: Charlene, a chemist, worked in a chemistry lab and earned $60,000 per year. Charlene quit in order…

Q: Eric and Susan just purchased their first home, which cost $146,000. They purchased a homeowner's…

A: given data the cost of home = $146,000 home insurance = $136,000 if anything happens the claim will…

Q: Calculate the Gross Income, Adjusted Gross Income, and Taxable Income

Q: Reba Dixon is a fifth-grade school teacher who earned a salary of $38,000 in 2021. She is 45 years…

A: Particulars Amount Description Gross income: Salary $38,000 Alimony received $14,400…

Q: Floyd owns an antique shop. During the year, he and his wife, Amanda, who works as a real estate…

A: Solution:- Calculation of the amount can Floyd and Amanda deduct as travel expense as follows:-…

Q: Milly, the wife of a notorious criminal and underworld gang leader, has signed a contract with a…

A: a. Gross income less the adjustments and available tax deductions equal taxable income. The gross…

Question

Ann is a self-employed restaurant critic who does her work exclusively from a home office. Ann's income is $25,000 before the home office deduction this year. Her office takes up 200 square feet of her 1,000-square-foot apartment. The total expenses for her apartment are $6,000 for rent, $1,000 for utilities, $200 for renter's insurance, and $800 for pest control and other maintenance.

What is Ann's home office deduction?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Hassad owns a rental house on Lake Tahoe. He uses a real estate firm to screen prospective renters, but he makes the final decision on all rentals. He also is responsible for setting the weekly rental price of the house. During the current year, the house rents for 1,500 per week. Hassad pays a commission of 150 and a cleaning fee of 75 for each week the property is rented. During the current year, he incurs the following additional expenses related to the property: a. What is the proper tax treatment if Hassad rents the house for only 1 week (7 days) and uses it 50 days for personal purposes? b. What is the proper tax treatment if Hassad rents the house for 8 weeks (56 days) and uses it 44 days for personal purposes? c. What is the proper tax treatment if Hassad rents the house for 25 weeks (175 days) and uses it 15 days for personal purposes?
Which of the following will result in the recognition of gross income? Gail's employer allows her to set aside $ 4,000 from her wages to cover the cost of daycare for Gail's four-year-old daughter. Gail's daycare costs are $ 4,300 for the year. Hannah purchases a new sofa from her employer, Sofas-R-Us, for $ 1,200. The cost of the sofa to the furniture store is $ 1,100 and the sofa normally sells for $ 1,700. Jayden's employer purchases her commuting pass for the subway at a cost of $ 225 per month. Havana is a lawyer. The law firm she works for pays for her subscription to Lawyer's Weekly, a trade magazine for attorneys. None of the above will result in recognition of gross income.
Ray, 83, is a used car dealer. He lives in a rural community and operates the business out of his home. One room in his 6-room house is used exclusively for his business office. He parks the cars in his front yard, and when customers come along, they sit on the front porch and negotiate a sale price. The income statement for Rays auto business is as follows: If Rays home were rental property, the annual depreciation would be 2,900. The utilities and upkeep on the home cost Ray 6,400 for the year. Rays mortgage interest for the year is 2,400. When asked about the loan fees, Ray bitterly responds that Jim, the bank loan officer, charges him 10 percent of his gross profit on cars financed through the bank. Ray says, The money is under the table, and if I dont shell out the cash, Jim wont loan the money to my customers to buy my cars. Everybody goes to Jimhes got the cash. Write a letter to Ray explaining the proper treatment of this information on his tax return.
During the last five months of the year, Dwana opens a new Internet telecommunications business called Dwan-Com. Dwan-Com bills 50,000 of revenues, but receives only 40,000 cash. Dwan-Com incurs 3,000 of supply expenses, and 41,000 of labor costs. Dwan-Com pays for 2,200 of the supplies and 38,000 of the labor costs in the current year. a. What is Dwan-Coms taxable income if it elects the cash method of accounting? b. What is Dwan-Coms taxable income if it elects the accrual method of accounting? c. What method of accounting do you recommend that Dwan-Com elect?