1) [20 points] Toshiomi works as a sales representative and travels extensively
ID: 2581231 • Letter: 1
Question
1) [20 points] Toshiomi works as a sales representative and travels extensively for his employers business. This year Toshiomi was paid $75,000 in salary and made the following expenditures: State income taxes withheld $6,300 Employee business expenses (unreimbursed portion) 1,450 Charitable contributions Investment counseling fees Tax preparation fee 200 700 310 Toshiomi also made a number of trips to Las Vegas for gambling. This year Toshiomi won $12,000 in a poker tournament and this amount was almost enough to offset his other gambling losses ($13,420). Calculate Toshiomi's taxable income if he files single with one personal exemption.Explanation / Answer
Salary $75,000.00 Gambling winnings $12,000.00 AGI $87,000.00 Less: Itemized Deduction State income taxes withheld -$6,300.00 Gambling winnings -$12,000.00 -$18,300.00 Unreimbursed Business expenses $1,450.00 Investment counseling fees $700.00 Tax preparation fee $310.00 $2,460.00 Itemized deductions subject to 2% AGI floor (87,000 x 2%) -$1,740.00 -720 Less: Charitable contribution -200 $66,760.00 Less: Personal Exemption -4050 Taxable Income $62,710.00
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.