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 gfsdf Analysis Paper

1. Submitting Status:

Committed filing with each other

2 . Self-Employment Income

Cash flow from asking practice doze, 000

Bills:

Travel850

Postage600

Office supplies500

Client lunches (780 by 50%)390

Devaluation – aged computer

applying half-year convention:

(1, 800 by 11. 52% x ½ )104

Downgrading – new laptop

using mid-quarter convention:

(1, 2 hundred x 5%) 60 two, 504

Self-employment income 9, 496

three or more. Self-Employment Duty and Allowable Portion of Self-Employment Tax Net earnings via self-employment sama dengan 9, 496 x. 9235 = almost 8, 770

Earning subject to sociable security section: 110, 75 - ninety-seven, 350 sama dengan 12, 750 > almost 8, 770 consequently all of the net earnings via self-employment profits is subject to the cultural security percentage of the self-employment tax Sociable security section: 8, 770 x 12. 4% sama dengan 912

Treatment portion: eight, 770 times 2 . 9% = 254

Total self-employment tax: 1, 166

OR

almost 8, 770 times 13. 3% = you, 166

Deductible portion:

Sociable security section: 8, 770 x 6. 2% = 544

Medicare insurance portion: almost 8, 770 back button 1 . 45% = 127

Allowable portion: 671

OR

8770 x several. 65% = 671

four. Gain on Sale of Business Use Laptop

Note: the computer is a section 1231 asset (used within a trade or perhaps business to get > 1year) Accumulated depreciation:

2009: one particular, 800 times 20% sama dengan 360

2010: 1, 800 x 32% = 576

2011: you, 800 by 19. 2% = 346

2012: 1, 800 x 11. 52% x ½ = 104

1, 386

Gain:

Amount realized 600

Adjusted basis (1, 800 – one particular, 386)(414)

Gain – Sec. 1231 gain 186

Section 1245 rekindle 186 � entire gain is recharacterized as normal income five. Rental Income/(Loss)

Since the people rented the property for at least two weeks and did not reside in the property for at least more suitable of two weeks or 10% of the local rental days in the past year, the beach house is considered primarily a rental property (a nonresidence ). Gross local rental incomeRental expenditures:

Mortgage curiosity = (84/91) × $4, 000 = $3, 692

Property taxes= (84/91) × $6, two hundred = $5, 723

Insurance = (84/91) × $1, 400 sama dengan $1, 292

Maintenance sama dengan (84/91) × $1, 000 = $923

Depreciation sama dengan (365, 000 x three or more. 636%) back button (84/91) sama dengan $12, 251

Total local rental expensesNet local rental lossProperty income taxes deducted by AGI sama dengan (7/91) times $6, 2 hundred = $477Mortgage interest deducted from AGI = $0 (not deemed a personal residence)DescriptionTripeca Company stock Jacob Company stock Vintage paintingTotalRental loss Loss insurance deductible against unaggressive incomeRemaining leasing lossMaximum deduction against non-passive income offered before phase-outPhase-out of optimum deductionMaximum deductions against nonpassive income obtainable in current yearRemaining rental loss in 2012Remaining rental reduction deductible in 2012Passive loss carryforward $18, 000

(23, 881) ($5, 881)6. AGI:

Susie's wage 30, 1000

Hugh's merit 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 via corporate bonds 3, 95

Interest coming from checking account 330

Qualified returns 3, five-hundred

Long-term capital gain (see below) three or more, 200

Cash flow from limited partnership (passive income) one particular, 200

Rental loss (passive) deductible against passive income (1, 200) Much less: deductible percentage of self-employment duty (671) AGI before additional rental damage 146, 491

Additional allowable rental loss (see below) (1, 754)

AGI a hundred and forty four, 737

Long-term Capital Gain:

STLT28%25%15%(1, 900)9004, 200(1, 900)4, 200900 (1, 900)-- 0$2, 300$900$3, 200Additional Deductible Leasing Loss: (5, 881) (1, 200)(4, 681)

25, 00023, 246 [(146, 491 – 100, 000) x. 50]

1, 754

(25, 1000 – 3, 246)4, 681 (5, 881 – 1, 200) � see above1, 754 (Lesser of 1, 754 or four, 681 )2, 927 [5, 881 – (1, 200 & 1, 754)]7. Itemized Deductions: Medical:

Dentist expenses 2, 450

Hospital and doctor bills (11, 1000 – 3, 500)...

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