This website uses cookies to ensure you have the best experience. Learn more

Tax Stuff Essay

1191 words - 5 pages

1. Filing Status:
Married filing jointly
2. Self-Employment Income
Income from consulting practice 12,000
Travel 850
Postage 600
Office supplies 500
Client lunches (780 x 50%) 390
Depreciation – old computer
using half-year convention:
(1,800 x 11.52% x ½ ) 104
Depreciation – new laptop
using mid-quarter convention:
(1,200 x 5%) 60 2,504
Self-employment income 9,496
3. Self-Employment Tax and Deductible Portion of Self-Employment Tax
Net earnings from self-employment = 9,496 x .9235 = 8,770
Earning subject to social security portion: 110,100 - 97,350 = 12,750 > 8,770 therefore all of the net earnings from ...view middle of the document...

Gross rental income| $18,000|
Rental expenses:Mortgage interest = (84/91) × $4,000 = $3,692Property taxes= (84/91) × $6,200 = $5,723Insurance = (84/91) × $1,400 = $1,292Maintenance = (84/91) × $1,000 = $923Depreciation = (365,000 x 3.636%) x (84/91) = $12,251Total rental expenses| (23,881)|
Net rental loss| ($5,881)|
Property taxes deducted from AGI = (7/91) x $6,200 = $477||
Mortgage interest deducted from AGI = $0 (not considered a personal residence)||
6. AGI:
Susie’s salary 30,000
Hugh’s award 350
Hugh’s salary 22,000
Hugh’s commissions 75,000
Self-employment earnings 9,496
Gain on sale of computer (ordinary income) 186
Interest from corporate bonds 3,100
Interest from checking account 330
Qualified dividends 3,500
Long-term capital gain (see below) 3,200
Income from limited partnership (passive income) 1,200
Rental loss (passive) deductible against passive income (1,200)
Less: deductible portion of self-employment tax (671)
AGI before additional rental loss 146,491
Additional deductible rental loss (see below) (1,754)
AGI 144,737
Long-term Capital Gain:
Tripeca Company stock |(1,900)|||||
Jacob Corporation stock ||||900||
Antique painting||4,200||||
|| (1,900)|-|- ||
Additional Deductible Rental Loss:
Rental loss |(5,881) ||
Loss deductible against passive income|(1,200)||
Remaining rental loss|(4,681)||
Maximum deduction against non-passive income available before phase-out|25,000||
Phase-out of maximum deduction|23,246| [(146,491 – 100,000) x .50]|
Maximum deduction against non-passive income available in current year|1,754| (25,000 – 23,246)|
Remaining rental loss in 2012|4,681| (5,881 – 1,200) see above|
Remaining rental loss deductible in 2012|1,754| (Lesser of 1,754 or 4,681 )|
Passive loss carryforward|2,927| [5,881 – (1,200 + 1,754)]|
7. Itemized Deductions:
Dentist bills 2,450
Hospital and doctor bills (11,000 – 3,500) 7,500
Physical therapy 1,075
Prescription drugs 245
Eye doctor visits 350
Eyeglasses 625
Total medical expenses 12,245
Minus: 7.5% of AGI (144,737 x 7.5%) (10,855)
Deductible medical expenses 1,390
Mortgage interest on residence 6,900
Mortgage interest on home equity loan 2,500
Points ($1,200 / 15 yrs x 3/12) 20
Investment interest [(limited to net investment
income = (3,100 interest + 330 ineterset 225 deductible
investment expense* = 3,205) 3,205
* Deductible investment expense is the lesser of investment interest expense and deductible
miscellaneous itemized deductions subject to the 2% AGI floor (see amount calculated on...

Other Papers Like Tax Stuff

Boston Tea Party Essay

844 words - 4 pages dumped 10,000 pounds of tea into the ocean. This is all how the Boston Tea Party came about, but what really made the Americans mad enough to just dump thousands of pounds of tea into the ocean? It all started when the King of Britain was upset about all the money lost during the French Indian War, and so he passed taxes on the colonies to make the money up. However, before he could tax the colonies, he had to come up with Acts such as, the Sugar

Acc331 Cheat Sheet Essay

2481 words - 10 pages - federal 3 years regular, 6 years-omit>25% of gross income, none-fraud. State may be different, Michigan regular is 4. FICA(federal insurance contributions act)-social security tax -social security 6.2% 2010 4.2% 2011. Base amount is 106,800 -medicare 1.45% FUTA(federal unemployment tax act) 6.2% on first $7,000 of wages Chapter 3 Basic Tax Structure -Economic income (+)only place where u add stuff when determining GI -Gross Income

Accounting Careers

1667 words - 7 pages available in the field of accounting. Accounting careers can range from entry level positions to executive level positions. Some of the popular careers in accounting are Accountant, Accounting Clerk, Accounting Manager, Bookkeeping, Budget Analyst, Certified Internal Auditor, Chief Financial Officer – CFO, CPA, Forensic Accounting, Tax Accountant. MAJOR FIELDS OF ACCOUNTING There are three major fields of accounting public accounting, management

A Breath of Fresh Air

1236 words - 5 pages present, the government should do something to address the problem; solutions such as the R.A. 9211, Sin Tax and Cancer ads could help lessen the number of smokers in our country. According to the Merriam Webster Dictionary, smoking refers to inhaling and exhaling the fumes of burning plant material and especially tobacco or smoking tobacco habitually. Cigarette smoking is a very dangerous act, yet smokers often say that it is good and beneficial


908 words - 4 pages sponsor. I have to admit that I had never shopped at a thrift store, but once I looked around, I saw some really nice things for great prices. At the same time, my husband and I bought a retirement house .There would be five years between buying the house and retiring to it, so how could we furnish it nicely until we were ready to move in our "good" stuff? I realized that I was standing in the answer: thrift stores! The final irony is that we

Policy Process- the Affordable Care Act

1832 words - 8 pages Discovery Project Credit, Medicaid and CHIP Payment Advisory Commission, Comparative Effectiveness Research, Prevention and Public Health Fund, Medicare Beneficiary Drug rebate, Small business tax credits, Medicaid drug rebate, coordinating care for dual eligible, General Biologic drugs, New requirements on Non-profit Hospitals, Medicaid coverage for Childless adults, Reinsurance program for Retiree coverage, Pre-existing conditions insurance plan

Financial Accounting

1857 words - 8 pages useful service to the society. There are a lot of stuff can be done by an accountant. Firstly, an accountant does bookkeeping. They keep a systematic record of the transaction in the business to ensure the organization operation. Accountant also analyzed and review budgets and expenditures for their clients. A business man or a shareholder would like to know their profit or loss annually. It is very important to know a company financial position

Analysis of Marketing Environment

927 words - 4 pages controlling food business is health and other issues are license, employee laws, tax issues etc. McDonald’s follows the local government’s policies as well as foreign investment policies on its franchise business strategy. Political instability of local state also affects McDonald’s business. Political factors The business operation of an organisation is always influenced by the policies of state and its government. McDonald’s business is

American Depress

1754 words - 8 pages . Legalization might encourage legitimate drug companies to try to improve the stuff that people take. The resources gained from tax and saved on repression would allow governments to guarantee treatment to addicts—a way of making legalization more politically palatable. The success of developed countries in stopping people smoking tobacco, which is similarly subject to tax and regulation, provides grounds for hope. A Calculated Gamble, or Another


2307 words - 10 pages . The following items must be included in your budget. If you do not include some of the optional stuff, be sure you have an explanation why. (things like cell phone, vacation….) The following are the categories you must have. * Gross and net pay * Taxes (These must be taken out of gross pay first thing.) Federal, state (both based on income tax tables), local and FICA (7% of gross) Your W2 form is used for your tax form

Make Versus Buy

1157 words - 5 pages for materials includes $200,000 for GHL. But it’ll be tricky stuff to handle if we don’t use it up. We bought it for $5,000 a ton and you couldn’t buy it today for less than $6,000. But you’d get only $4,000 a ton if you sold it, after you covered all the handling expenses.” Walsh also worried about the workers if he closed the department. “I don’t think we can find room for any of them elsewhere in the fi rm. However, I believe Packages would

Related Essays

National Debt Crisis Essay

680 words - 3 pages solution to this problem would be to increase taxes. You could also legalize the illegal aliens and tax them. Another solution would be to rationalize health care so that it limits the user according to the severity of their condition. You could also limit spending in the military. I used to be in the military and I witnessed how my unit would spend their monthly budget on stuff we did not need because they had the notion that if we do not spend

The Economic Problem For Governments, Businesses And Individuals Year 7

605 words - 3 pages why they want so many things, But if they buy too many things they will have another problem; tax. If businesses buy too many things they will have a problem which is called tax, meaning they will have to lower wages and pay the money that would have paid the workers. The workers would not like this and leave the company, thus making it smaller and maybe fail completely. There is no point in making a business that is destined to fail. Businesses

Plastic Surgery Essay

1534 words - 7 pages Running Head: THE BOTAX The Botax Andrew K. Keahiolalo Embry-Riddle Aeronautical University Abstract There is a new tax being proposed in some states, ironically not California, to tax plastic surgery and related procedures. Through out the course of this document, we will discuss the effects of the tax. Including the relationship between the industry

Student In Finance Stream Essay

592 words - 3 pages ". The author states that Derivative market is all a game of “unknown unknown”, wherein the nature of shares, risk of dilution of shares, and the way dividends are paid out and taxed have to be understood, but those who know it, it provides endless opportunities to them. He exemplifies his statement by giving the case of “BILLION DOLLAR BABY” wherein the UK Banks were rumored to have lost about $1 billion, in equity derivatives in the name of tax