Cindy’s commission income is $180,000 How much net income will be reported from this business (on Schedule C)?
180000-5500-3000-20000-40000-7000 = 104500
How much is the total itemized ded before AGI limitation? How much is the
total itemized ded after AGI limitation?
6500 + 2000 = 8500
Medical Exp: 2000
-10% AGI: 92300
Allowable: 0
After AGI Limitations: 6500
What much ded for AGI will be reported on the first page of Form 1040?
12,200 = 7200+5000
AGI = 104500-12200 = 92300
In 2016, Jordan has some damages on his business property and her personal
property when tornado hit his area. Her truck was used 100 percent for
business use in her sole proprietorship. The car had originally cost $35,000
and she had taken $5,000 depreciation. At the time of the disaster, it was
worth $25,000. After the accident, it was totaled. She received insurance
company’s payment of $20,000. Her home was also damaged. The adjusted basis was $200,000. The FMV at the time of the natural disaster was $250,000
and the FMV after the damage was 210,000. Assuming her home was not covered on tornado damage. If Jordan’s AGI is $70,000 (before considering the
loss), determine. Her C&T loss on business property: adj. basis of damaged property = 3500-5000 = 30000; Decline in value: 25000-0=25000. It is a
complete loss on business property. Loss amount = 30000–insurance proceed = 30000-20000 = 10000. C&T loss on personal – used property: ADJ Basis
= 200000, Decline in value = 250000-210000= 40000, Loss amount on her home = 40000-insurance = 40000-0=40000, Allowable ded 40000–100-10%
AGI = 40000-100-7000 = 32900 A. her itemized ded for the casualty loss. Loss amount: 40000-100 floor- 10% AGI.Total: 32900 B.how much is her deducible
casualty loss? Business Casualty Loss Truck: Adjusted Basis = 35000-5000=30000-20000=10000, 32900 + 10000 = 42900
Table was given without word
problem. 6: In a like kind exchange,
normally no gain/loss is recognized.
However, if boot is received (column
4), a gain may be recognized. If it’s
Referral fees paid to non-brokers for referrals
(illegal under state law and subject to criminal
penalties)
40K
Disallowed
Property tax on the office
5.5K
Sch C
Office supplies
3K
Sch C
Alimony paid to her ex-husband
7.2K
Ded for
AGI
Mortgage int paid on her residence
6.5K
Sch A
Office rental expenses
20K
Sch C
Office staff salaries
40K
Sch C
Medical insurance premium paid for herself and her
dependents
5K
For AGI
Fees paid to Broker Association
7K
Sch C
Political contribution to support her party
3K
Disallowed
Parking tickets
500
Disallowed
Medical expenses
2K
Sch A
Adjusted
basis of
old asset
1
Boot
given
2
FMV of
new
asset
3
Boot
received
4
Postponed
Gain/loss
7=5-6
New basis of received
property 8
17000
0
14000
0
-3000
14000+3000=17000
15000
0
29000
0
14000
0
14000
29000-14000 = 15000
4000
6000
8000
-1500
0
-1500
8000+1500=
9500
7000
0
12000
4000
9000
4000
5000
12000-5000= 7000
Stock A
Stock B
Stock C
Stock D
Stock E
-4800+2500=
-2300
8970
6670
d) What amount of the gain, if any, is subject to the preferential rate for certain
capital gain? Only long term inv.s
6670
1
2
3
4
6
6
8