Tax Solution - filing her 2011 Federal income tax return Write a letter to Jane that contains your advice and prepare a memo for the tax files Dear Jane

Part 2- Tax Planning In 2011, Jane plans to continue her job with Legal Services Inc. Therefore, items a, d, and 1 will recur in 2011. Jane plans to continue her typing services business (refer to item b) and expects gross receipts of 26,000. She projects that all business expenses (refer to item h) will increase by 10%, except for office rent, which, under the terms of her lease, will remain the same as in 2010. Items e,f,g,j and k will not recur in 2011. Items c,i,m,n,p, and q will be approximately the same as in 2010. Jane would like you to compute the minimum amount of estimated tax she will have to pay for 2011 so that she will not have to pay any additional tax upon

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Unformatted text preview: filing her 2011 Federal income tax return. Write a letter to Jane that contains your advice and prepare a memo for the tax files. Dear Jane, Because your gross income for your business will be higher we will need to adjust your estimated tax for 2011. The following is shown for your new tax: Total Income: $26,000 Expenses: $7000 4840 5148 5050 550 3300 Total Adjustments: $ 25,888 AGI = $112 I hope that this predicted amount and schedule assists you in calculating your new taxable income and AGI for 2011....
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