A taxpayer carries on a plumbing business and employs five plumbers. The taxpayer incurred the following...
A taxpayer carries on a plumbing business and employs five plumbers. The taxpayer incurred the following expenditure.
- Paid the accountant $500 to prepare a cash flow budget for the next three years to determine the liquidity of the business over that period of time.
- Paid the accountant $1,400 to prepare the business' financial statements to enable her income tax return to be prepared and lodged by her accountant.
Based on these expenses, what amount can the taxpayer claim as a tax deduction under s 25-5 ?
Select one:
a. 1,400
b. $500
c. $1,900
d. $0
Homework Answers
c. $1900 is the correct answer.
The Income Tax Assessment Act of 1997, subsection 25-5(1) allows the taxpayer to claim deduction for costs incurred on completing their tax returns and other tax related expenses from your income provided it relates to the affairs of the business.
Since both the expenses i.e $500 and $1400 relates to the business of the taxpayer, the taxpayer can claim a deduction for both the expenses.
Add Answer to:
A taxpayer carries on a plumbing business and employs five
plumbers. The taxpayer incurred the following...
Deductions General Concepts and Trade or Business Deductions 29. Are any of the following expenditures deductible...
Deductions General Concepts and Trade or Business Deductions 29. Are any of the following expenditures deductible on an individual taxpayer's income tax return? Explain each item. Amount $100 3.000 Expenditure Cost of having income tax return prepared by a CPA Legal fee for divorce proceeding of which 20 percent related to exploring advice Lost wages for time to work while having income tax return prepared Legal fee for et pang advice of which 35 percentated to tax planning return Cost...
26. 27. 28 it doesnt let me eddit the questins. I need 27 and 28 if...
26. 27. 28
it
doesnt let me eddit the questins. I need 27 and 28 if you can, but
27 is my priority
26. Are any of the following losses deductible an individual's income tax return? If so, ish loss deductible "for" or "from" AGI? Explain cach loss. Amount 3.000 Loss Loss on sale of stock in an individual's wholly-owned business corporation Hobby loss in excess of hobby gross income Gambling losses in excess of gambling winnings Loss on sale...
Gleim 6 Deductions from AGI [1] Which one of the following expenses does not qualify as...
Gleim 6 Deductions from AGI [1] Which one of the following expenses does not qualify as a deductible medical expense? A. Cost of long-term care for a developmentally disabled person in a relative’s home. B. Special school for a deaf child to learn lip reading. C. Cost of elevator installed for individual who had heart bypass surgery (in excess of increase in value of individual’s home). D. Cost and care of guide dogs used by a blind person in his...
Problem: Rockford Corporation is a wholesale plumbing supply distributor. The corporation was organized in 1981, under...
Problem: Rockford Corporation is a wholesale plumbing supply distributor. The corporation was organized in 1981, under the laws of the State of Illinois, with an authorized capitalization of 10,000 shares of no-par common stock with a stated value of $30 per share. The common stock is sold over the counter in the local area. You have been hired as of Friday, December 26, 2014, to replace the controller, who has resigned. As controller, you are responsible for the corporation’s accounting...
For the following transactions, identify which principle, constraint, or assumption would apply: Assume a partnership’s business...
For the following transactions, identify which principle, constraint, or assumption would apply: Assume a partnership’s business is going to continue indefinitely. Based upon the dollar amount of cash paid or received, transactions are recorded. An accountant may ignore expense accounts with low dollar balances when deciding which expense accounts, they may want to increase spending on. Benefits of a new software system should be greater than the costs to implement the new software system. Business owners should keep their personal...
Alfred E. Old and Beulah A. Crane, each age 42, married on September 7, 2016. Alfred...
Alfred E. Old and Beulah A. Crane, each age 42, married on
September 7, 2016. Alfred and Beulah will file a joint return for
2018. Alfred's Social Security number is 111-11-1112. Beulah's
Social Security number is 123-45-6789, and she adopted "Old" as her
married name. They live at 211 Brickstone Drive, Atlanta, GA
30304.
Alfred was divorced from Sarah Old in March 2016. Under the
divorce agreement, Alfred is to pay Sarah $1,250 per month for the
next 10 years...
Please show the formulas. Unique Sinks Master Budget Unique Sinks is a family-owned manufacturing business specializing...
Please show the formulas.
Unique Sinks Master Budget Unique Sinks is a family-owned manufacturing business specializing in sinks; it does not produce any of the faucets or plumbing needed for installation. The company focuses on the new housing market, which has been quite strong for over ten years. Unique Sinks' core competencies include a relatively low- cost but high-quality manufacturing process for sinks. During the last several years, demand for large houses with three to four bathrooms was strong. And...
using the information fill out the 1040 tax form 1:9-72 George Large (SSN 000-11-1111) and his...
using the information fill out the 1040 tax form
1:9-72 George Large (SSN 000-11-1111) and his wife Marge Large (SSN 000-22-2222) live at 2000 Lakeview Drive, Cleveland, OH 49001 and want you to prepare their 2017 income tax return based on the information below: George Large worked as a salesman for Toyboat, Inc. He received a salary of $80,000 ($8,500 of federal income taxes withheld and $1,800 of state income taxes withheld) plus an expense reimbursement from Toyboat of $5,000...
SECTION A (40 marks): Answer ALL Questions in this section. QUESTION ONE a) Aseda Ltd incurred...
SECTION A (40 marks): Answer ALL Questions in this section. QUESTION ONE a) Aseda Ltd incurred the following cost in its manufacturing operations GH¢ Cost of material purchase 20,000 Import duties 400 Trade discount @10% of purchase cost Cash discount 500 Irrecoverable taxes 1,000 Salary of factory plant operator 2,500 Direct labour 5,000 Salary of factory supervisor 4,000 Cost of expected production losses 800 Administrative overhead (Note) 16,000 Cost of storage of raw material for further processing 2,000 Marketing cost...
Please help with part 4-9. I will highly apprecite it. The Business Situation Concrete Helmet Company...
Please help with part 4-9. I will highly apprecite it.
The Business Situation Concrete Helmet Company is a newly formed company that manufactures bicycle helmets. The company began operations January 1, 2020. Its accountant quit the second week of operations, and the company is searching for a replacement. The company has decided to test the knowledge and ability of all candidates interviewing for the position Each candidate will be provided with the information below and then asked to prepare a...
Deductions General Concepts and Trade or Business Deductions 29. Are any of the following expenditures deductible on an individual taxpayer's income tax return? Explain each item. Amount $100 3.000 Expenditure Cost of having income tax return prepared by a CPA Legal fee for divorce proceeding of which 20 percent related to exploring advice Lost wages for time to work while having income tax return prepared Legal fee for et pang advice of which 35 percentated to tax planning return Cost...
26. 27. 28
it
doesnt let me eddit the questins. I need 27 and 28 if you can, but
27 is my priority
26. Are any of the following losses deductible an individual's income tax return? If so, ish loss deductible "for" or "from" AGI? Explain cach loss. Amount 3.000 Loss Loss on sale of stock in an individual's wholly-owned business corporation Hobby loss in excess of hobby gross income Gambling losses in excess of gambling winnings Loss on sale...
Alfred E. Old and Beulah A. Crane, each age 42, married on
September 7, 2016. Alfred and Beulah will file a joint return for
2018. Alfred's Social Security number is 111-11-1112. Beulah's
Social Security number is 123-45-6789, and she adopted "Old" as her
married name. They live at 211 Brickstone Drive, Atlanta, GA
30304.
Alfred was divorced from Sarah Old in March 2016. Under the
divorce agreement, Alfred is to pay Sarah $1,250 per month for the
next 10 years...
Please show the formulas.
Unique Sinks Master Budget Unique Sinks is a family-owned manufacturing business specializing in sinks; it does not produce any of the faucets or plumbing needed for installation. The company focuses on the new housing market, which has been quite strong for over ten years. Unique Sinks' core competencies include a relatively low- cost but high-quality manufacturing process for sinks. During the last several years, demand for large houses with three to four bathrooms was strong. And...
using the information fill out the 1040 tax form
1:9-72 George Large (SSN 000-11-1111) and his wife Marge Large (SSN 000-22-2222) live at 2000 Lakeview Drive, Cleveland, OH 49001 and want you to prepare their 2017 income tax return based on the information below: George Large worked as a salesman for Toyboat, Inc. He received a salary of $80,000 ($8,500 of federal income taxes withheld and $1,800 of state income taxes withheld) plus an expense reimbursement from Toyboat of $5,000...
SECTION A (40 marks): Answer ALL Questions in this section. QUESTION ONE a) Aseda Ltd incurred the following cost in its manufacturing operations GH¢ Cost of material purchase 20,000 Import duties 400 Trade discount @10% of purchase cost Cash discount 500 Irrecoverable taxes 1,000 Salary of factory plant operator 2,500 Direct labour 5,000 Salary of factory supervisor 4,000 Cost of expected production losses 800 Administrative overhead (Note) 16,000 Cost of storage of raw material for further processing 2,000 Marketing cost...
Please help with part 4-9. I will highly apprecite it.
The Business Situation Concrete Helmet Company is a newly formed company that manufactures bicycle helmets. The company began operations January 1, 2020. Its accountant quit the second week of operations, and the company is searching for a replacement. The company has decided to test the knowledge and ability of all candidates interviewing for the position Each candidate will be provided with the information below and then asked to prepare a...
Most questions answered within 3 hours.
-
Business Phasing
1.Discuss the logical progression for growing a business, which
starts from the initial idea...
asked 3 minutes ago -
Modify
When executing on the command line having only
this program name, the program will accept...
asked 1 hour ago -
Kenny Electric Company's noncallable bonds were issued several
years ago and now have 20 years to...
asked 1 hour ago -
find H(e^Jtheta) at theta= 0, pi/10, pi/20, pi/2 for
the following:
a) H(e^Jtheta)= 1+e^Jtheta
b) H(e^Jtheta)=...
asked 1 hour ago -
Home Corporation will open a new store on January 1. Based on
experience from its other...
asked 2 hours ago -
In a neoclassical model, use the IS-LM to analyze the effect of
a permanent money supply...
asked 2 hours ago -
An electron passes through a point 2.67 cm from a long straight
wire as it moves...
asked 3 hours ago -
A grammar is a 4-tuple G, G = (Ν, Σ, Π, Σ, S) where, Ν is...
asked 4 hours ago -
In this part, calculate the present values. Use the Excel PV
function to compute the present...
asked 4 hours ago -
Part 1. Primitive Types, Sorting, Recursion for
Homework.java
a) Implement the static method initializeArray that receives...
asked 5 hours ago -
Using C++, build a sorter that can rank a sequence of numbers in
a descending order....
asked 5 hours ago -
Derive ground state term symbols. Use notation 2S(1/2) for state
2S1/2
a) d5
b) f3
c)...
asked 5 hours ago