Clem is married and is a skilled carpenter. Clem's wife, Wanda, works part-time as a substitute grade school
Determine the amount of Clem's expenses that are deductible
this year (if any) under the following
(Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your
Clem is self-employed and this year he incurred $830 for tools and supplies related to his job. Since neither
were covered by a qualified health plan, Wanda paid
premiums of $4,350 to provide coverage for
herself and Clem.
Clem and Wanda own a garage downtown that they rent to a local business for storage. This year they incurred
$1,540 in utilities and depreciation of $1,170.
Clem paid self-employment tax of $17,900 and Wanda had $4,500 of Social Security taxes withheld from her
Clem paid $72 to rent a safe deposit box to store his coin collection. Clem has collected coins intermittently
since he was a boy, and he expects to sell his collection when he retires.
The tools and supplies and the health insurance are deductible for AGI.
The utilities and depreciation are deductible for AGI (rental activity).
One-half of the SE tax is deductible for AGI but the Social Security tax is not deductible.
The safe deposit fee is an itemized deduction (it appears that Clem is
in rare coins rather than a dealer in
coins – a business).
Betty operates a beauty salon as a sole proprietorship. Betty also owns other property including a half interest in a
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