TAXch6pro

TAXch6pro - 49. a. Gross income 22,000 Less: taxes,...

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Brittany Smith 2328356 Group 10 Chapter 6: 47,49,50 47. a. Tim has a deductible whether or not he requires the two restaurants. When a tax payer is not in business that is the same as or similar to the one being investigated, the tax result depends on whether the new business is acquired. b. Because Tim is already in the restuarnt business he can deduct the other two additional restaurants he acquires. c. Tim is not in a business which means he has no deductibles d. Tim was not in the same business but acquired the two restaurants which means he is only able to deduct up to $5,000 (portion not deducted) amortize over 180-month period.
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Unformatted text preview: 49. a. Gross income 22,000 Less: taxes, interest, charity 19,000 _________ Remainder 3,000 Deduct: Show registration 3,000 Advertising 1,000 Dealer licence 500 ___________ (1500) deduct: depreciation 1,200 ___________ ___________ Net loss-0-b. Gross income 22,000 Less: Taxes, interest, and contribution 19,000 other expense 5,400 Depreciation 1,200 25,600 ________ Reduction in AGI (3600) 50. Real property taxes 3,800 Mortgage interest 7,500 ______ AGI 11,300...
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TAXch6pro - 49. a. Gross income 22,000 Less: taxes,...

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