ini of the deduction and whether it is for or from AGI for the following situati
ID: 2519378 • Letter: I
Question
ini of the deduction and whether it is for or from AGI for the following situations M's hoat is a 5Q fort yacht, und he operates his business as a sole proprietorship G.e, he is self employed) M is an employce for Yachts of Fun Ine M is an employee for Yachts, which reimbursed him $70 of the cost (included in his income on Fornm W-2) uting Employee's Deductions. T is employed as a supervisor in the tax depart- t of a public accounting firm in Manbattan. She took the job after working on tax stalf at a commercial tax preparation firm. She lives in a condominium on the amou b. at Comp the per east side. Every day she takes the subway to and from work. She loves living ew York. T's total income for the year consisted of compensation of $80,000 and limony of $2.100. This year she incurred the following expenses: AICPA dues New York State Society of CPAs dues State of New York CPA license Subscriptions to tax journals Continuing education course on new tax law New business suits Cleaning of suits Legal fee for preparation of will ($230 related to tax planning). Legal fee to collect alimony Job hunting expenses (resumes and employment agency fee) Subway expenses Safe deposit box (holds investment documents) Annual fee on brokerage account... Qualified residence interest. Real estate taxes. $ 400 315 345 225 600 700 389 1,500 250 150 456 90 130 8,100 3,700 T's employer reimbursed her $100 for the AICPA dues (included in her income). a. Compute T's taxable income. b. Assuming T expects her expenses to be about the same for the next several years, what advice can you offer?Explanation / Answer
1.
2. Assuming T Expects her expenses to be about same for the next years, we can suggest her to save in other savings because the income is more and the expenses are minimal, for deduction she can invest in saving.
Compensation 80000 Alimony 2100 Total 82100 Expenses Amount Eligibility for Deduction AICPA Dues 400 300 Society CPA Dues 315 315 CPA License 345 345 Subscription of Tax Journals 225 225 Education Course on law 600 600 New Business Suits 700 0 Cleaning of Suits 389 0 Legal Fees for Will 1270 0 Legal Fees for Tax Planning 230 230 Legal Fee for Alimony 250 250 Job Hunting Expenses 150 0 Subway Expenses 456 0 Safe Deposit Box 90 0 Annual Fee on brokerage 130 0 Qualified Residence interest 8100 8100 Real Estate Taxes 3700 3700 Total 17350 14065 Taxable Income 68035 (82100-14065)Related Questions
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