acct hw 5 - 25 a The rental income is excluded from AGI b...

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Bryan Whalen 4.) a. for AGI b. from AGI c. for AGI d. for AGI e. from AGI 5.) a. for AGI b. not deductible c. for AGI d. from AGI e. for AGI f. from AGI 9.) It is disallowed because Sid and Vienne are trying to deduct personal expenditures 10.) a. deductible b. not deductible c. deductible d. deductible e. deductible 11.) Schedule C 16.) Deductions are disallowed as violations of public policy because these expenses are not necessary and the IRS would actually be rewarding people for violating public policy. 20.) No. Political contributions are not deductible
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23.) a. If his business is acquiring other businesses then the expenses are deductible b. He can’t deduct any of these expenses is acquiring businesses is one of Paul’s hobbies. c. The 5000 must be related to his business and the 2000 in legal advice are amortized because Paul has set a fixed price to receive legal advice over the next 180 months
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Unformatted text preview: 25.) a. The rental income is excluded from AGI b. Only the mortgage interest and property tax are deductible, both for AGI 27.) They should not let her go because real estate taxes and mortgage interest are allocated on the basis of total days of use. 32.) a. yes b. He can deduct $4000 34.) a. 79,000+4000+3000+3500-900+1150= 89750 b. itemize 35.) The 4000 contribution to an IRA would not affect itemized deductions because it is deducted for AGI, not from AGI 43.) 700+250= 950 46.) 53000 48.) a. It is a hobby because only 33% of the activities constitute a business whereas 66% constitute a hobby b. 225000-3500= 221,500 c. 221,500+31,000-9000-7500=236,000 53.) 43,000+400-8400-4758-2200-1098-5350=21,594...
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