2022 tax rules indicate what amounts, ifany, cannot be deducted on Schedule C andOf these expenses,explain why in each case.20 Home Office Expense. (Obj. 4) Rita operates a childcare service in her home. The rooms usedfor this purpose constitute 30% of the total living space of the home. Expenses of operatingthe home during the year included electricity, $3,600; water, $340; gas heating, $480; propertytaxes, $4,000; and home repairs, $800. The depreciation on the rooms used for childcare was$1,800. What is the total amount of expenses that Rita can deduct for using her own hometo provide childcare services if she uses these rooms 2,000 hours in 2021 for her childcarebusiness?

An expenditure is indeed the cost of doing business that a company incurs in order to generate…

20 Home Office Expense. (Obj. 4) Rita op OF for this purpose constitute 30% of th the home during the year included elec taxes, $4,000; and home repairs, $80 $1,800. What is the total amount of to provide childcare services if she u business?

20 Home Office Expense. (Obj. 4) Rita op OF for this purpose constitute 30% of th the home during the year included elec taxes, $4,000; and home repairs, $80 $1,800. What is the total amount of to provide childcare services if she u business?

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter3: Business Income And Expenses

Section: Chapter Questions

Problem 22MCQ

See similar textbooks

Related questions

Q: Which of the following are "pay as you go" taxes? (multiple answers with incorrect answers…

A: The taxes that needs to be paid as and when income is earned by an individual rather than paying at…

Q: A horizontal analysis of the balance sheet would show (select all that apply): A Total stockholders'…

A: Solution Concept The comparative analysis can be done for both the income statement and the balance…

Q: ND 75% FOR ENDING INVENTORY.

A: Conversion cost refers to those costs involved in converting the direct material into finished…

Q: a. Paul is preparing a loading plan for an ICC freighter destined for Ghana. An agricultural…

A: A Small Introduction about LP Model Linear programming is utilized for getting the most ideal…

Q: Question 3 Coces, a furniture shop owner, buys a new set of cabinet worth $9,850. He receives an…

A: Trade discount is the discount, which is actually deduct from the original cost but it is not shown…

Q: Adele is planning for retirement. She would like to have $75,000 in her hand at the beginning of her…

A: Retirement means quite simple end of a phase of working for a time of years.This span of retirement…

Q: Using the incomplete Flexible Budget Performance Report below, calculate the total fixed costs on…

A: The flexible budget is prepared to compare the actual results, flexible data and master budget…

Q: An investment pays $2,000 every third year for 45 years (a total of 15 payments). Your opportunity…

A: Option C. $7317.16

Q: Ammon Company is authorized to issue 500,000 shares of $5 par value preferred stock. In its first…

A: Introduction: Journals: Recording of a business transactions in a chronological order. Each and…

Q: me (1) Game xed Cost for Food (P100,000) mace (P240,000) both Space (P1,750) tal for One (1) Game:…

A: Basic Concepts of Accounting

Q: Who may institute action for annulment of voidable contracts? Briefly discuss.

A: Contract Act- The Indian Contract Act of 1872 lays out the groundwork for forming a legally binding…

Q: 8. (13) DK company has its Branch at Gorakhpur. Goods are invoiced to this Branch at 20% profit on…

A: Head office means from where the company mainly operate and all branches are controlled from that…

Q: Accounts Receivable $1,000 Accounts Payable 100 Accumulated Depreciation (4,000) Cost of Goods Sold…

A: Net profit margin = Net Income / Net Sales where, Net income is calculated after deducting the total…

Q: Sort the following contribution margin income statement line items in the correct order from top…

A: Operating income is calculated after deducting the variable costs and fixed costs from the total…

Q: Thomas is an employer with two employees, Patty and Selma. Patty's wages are $12,450 and Selma's…

A: As per IRS, the maximum FUTA tax rate = 6% It is applicable on first $7000 of gross wages of each…

Q: how much do the contest sponsors have to deposit in the escrow account? (Round your answer to the…

A: $6,231,105 amount do the contest sponsors have to deposit in the escrow account.

Q: Record the re-issuance of 850 shares of treasury stock previously purchased for a price of $14 per…

A: Treasury stocks are repurchased shares of the company. The firm has the power to reissue these…

Q: Kerr Manufacturing sells a single product with a selling price of $600 with variable costs per unit…

A: Introduction: Break even point in units: At this point there is no profit and no loss for the units…

Q: rofit on end

A: Consolidation of accounting books means combination of accounts of parent company and subsidiary…

Q: Given the following, calculate the estimated cost of ending inventory using the gross profit method.…

A: Ending inventory = Cost of goods available for sale - Cost of goods sold Cost of goods sold = Sales…

Q: Ramsay Company established a branch in Pasig on March 1, 2022. Shipments of merchandise at billed…

A: Cost of Goods sold (COGS) is the value of goods sold in a particular period of time, In this. we…

Q: Enter the relevant costs of each alternative. Buy Drop Thickness Gauge and Make Lease and Make X…

A: Make cost is the cost to product the product internally. Buy cost is the cost to purchase the…

Q: The following ratios gauge a bank’s leverage EXCEPT* Bills Payable to Capital Accounts Capital…

A: Leverage ratio assess the ability of the company (here Bank) to meet its financial obligation. The…

Q: Transaction: Possible source document: Business sells goods or services for cash…

A: ANSWER Complete the following table by providing the missing information Is

Q: Fall Her from high school in 2021 and enrolls in college in the

A: AOTC is the tax credit to help pay for educational expenses paid for the…

Q: Unrealized profit on ending inventory A.will always be paired with a realized profit on beginning…

A: Inventory is the asset reported under the head current asset on the balance sheet of the company. It…

Q: A retail company determines its selling price by marking up on variable costs 56.25%. In addition,…

A: The contribution margin represents the difference between the sales price and the variable cost of…

Q: QUESTION 39 Par for the Course produces and sells 2,000 sets of golf clubs. Selling price per unit…

A: Contribution margin refers to contribution of a product towards the fixed cost of the company. Given…

Q: Using the sum of the years digit method, how much would be the book value of the asset on the year…

A: Solution Concept Under straight line method of depreciation , annual depreciation expense is charged…

Q: can you show me how to solve this problem for accounting? Presented here are long-term liability…

A: Bonds means an instrument issued by company acknowledging the debt due from company to bond holder.…

Q: It is usually associated with employee compensation that is based on the number of hours worked…

A: As per the guidelines, only one question is allowed to be answered so I am answering the first…

Q: ._______ Funding that comes from the sale of stock

A: Issue of stock or shares is one of the important source of finance being used by the business.…

Q: Special-Order Decision, Alternatives, Relevant Costs Sequoia Paper Products, Inc., manufactures…

A: Contribution margin takes into consideration only variable costs. Operating income takes into…

Q: Pharmally Biologic Inc has provided data concerning the company's Manufacturing Overhead account for…

A: Raw materials are the components which are used for the production of finished goods. Manufacturing…

Q: equipment P950,000. Additional information: Checks amounting to 300,000 were written to vendors and…

A: current assets are those are assets that are said to be realised within 1 year. the current assets…

Q: Hunter receives a gift from his grandmother on December 1, 2021. Grandmother paid $50,000 for the…

A: Gift tax is the amount of tax , which is paid to the government, when we gift the expensive thing to…

Q: A food distribution company has packaging costs of $150,000 for 12,500 packages they ship to…

A: Mixed cost problems are solved using the High -Low-cost method. High -Low-cost method Formula:…

Q: The amount of discount to be recorded if the invoice is paid within the discount period on a…

A: Trade discount is that discount which is being given to all the customers on the list price of the…

Q: establish a petty following information pertains to the fund. 1) On April 1, 2021, a petty cash fund…

A: The petty cash fund is established to maintain the cash balance for day to day transactions of the…

Q: ack and lill trade as partners in retail

A: Interest on capital of the partners , salaries to…

Q: Question (1) Draw up W Pentecost's complete Statement of financial Position from the following…

A: Statement of financial position shows all assets, liabilities and equity balance of the business.…

Q: Delafield Corporation has a single class of common stock and a single class of cumulative preferred…

A: Annual Dividend to Preferred shareholders = No. of preferred share outstanding x Par value per share…

Q: Murphy's Paw produces and sells 1,000 units of a single product per year (with excess capacity of…

A: Additional operating income on taking the special order would be difference between the actual sales…

Q: A machine with a cost of $63,210.00 has an estimated residual value of $4,731.00 and an estimated…

A: Unit of Output method Unit of production depreciation, also called as activity method, calculates…

Q: Question Content Area Preferred and Common Stock Dividends Delafield Corporation has a single class…

A: Dividends refers to the payments that is made by the entity to its shareholders in return for the…

Q: decrease

A: Qualitative aspects relate to the use of physical and mathematical quantities which includes time,…

Q: Required: Assume the perpetual inventory system is used. Determine the costs assigned to ending…

A: Answer FIFO (First in first out) It is the method of recording inventory in which we assume that the…

Q: Reviewing GM's financial information in GM Exhibit 1 and its stock price in GM Exhibit 2, when do…

A: Here discuss about the details of financial crisis which are involved with the General Motors (GM)…

Q: Maningkamot ko permi makapasar sports wear regularly buys sweaters from BSA Company and its allowed…

A: Cost of the purchase = List price - Trade discount + Freight charges where, Trade discount = List…

Q: A company's inventory was destroyed in a fire on January 28, 2020. The company's December 31, 2019…

A: Cost of goods sold = Sales - Gross profit where, Gross profit = Sales x Gross profit rate

Concept explainers

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.

Question

2022 tax rules

indicate what amounts, if
any, cannot be deducted on Schedule C and
Of these expenses,
explain why in each case.
20 Home Office Expense. (Obj. 4) Rita operates a childcare service in her home. The rooms used
for this purpose constitute 30% of the total living space of the home. Expenses of operating
the home during the year included electricity, $3,600; water, $340; gas heating, $480; property
taxes, $4,000; and home repairs, $800. The depreciation on the rooms used for childcare was
$1,800. What is the total amount of expenses that Rita can deduct for using her own home
to provide childcare services if she uses these rooms 2,000 hours in 2021 for her childcare
business?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

During the year, Rita rented her vacation home for twelve days for $2,400 and she used it personally for three months. The following expenses were incurred on the home: Property taxes $ 2, 200 Mortgage interest 10, 800 Utilities and maintenance 1,900 Depreciation 5, 000 Insurance 900 Calculate the gross income recognized from the rental property a. $0 b. $780 c. $1,300 d. $2,400
During the year, Arianna rented her vacation home for 12 days for $3,400 and she used it personally for three months. The following expenses were incurred on the home: Property taxes $ 2,400 Mortgage interest 10,800 Utilities and maintenance 1,900 Depreciation 5,000 Insurance 900 Please calculate her net rental gain or loss and itemized deductions.
Genie meets the requirements to deduct expenses related to a home office that she maintains in the spare bedroom of her rented house. She incurered the following expenses during the year: Annual cost of electricty for the entire house $1728 Cost of repairing light fixtures in the home office $200 Annual rent for the house $24000 the house is a total of 2000 square feet. the home office measures 156 square feet Genie uses the actual method of deducting expenses, what is her total home office deduction?
PPPeter operates a dental office in his home. The office occupies 250 square feet of his residence, which is a total of 1,500 square feet. During 2021, Peter pays rent for his home of $12,000, utilities of $4,800, and maintenance expenses of $1,200. What amount of the total expenses should be allocated to the home office? a.$3,000 b.$2,500 c.$2,000 d.$0 e.None of these choices are correct.
Jayda, who is self-employed, maintains an office in her home that comprises 26% ( 360 square feet) of total floor space. Gross income for her business is $45,650, and her residence expenses are as follows: Real property taxes Interest on mortgage Operating expenses Depreciation (based on 26% business use) If required, round your final answer to the nearest dollar. a. What is Jayda's office in the home deduction based on the regular method? 9,595 X Feedback $4,764 7,940 3,970 4,715 Check My Work Self-employed individuals are not allowed a deduction for office in the home expenses unless a portion of the residence on a regular basis under certain circumstances. b. What is Jayda's office in the home deduction based on the simplified method? 1,100 X
aaPeter operates a dental office in his home. The office occupies 250 square feet of his residence, which is a total of 1,500 square feet. During 2021, Peter pays rent for his home of $12,000, utilities of $4,800, and maintenance expenses of $1,200. What amount of the total expenses should be allocated to the home office? a.$3,000 b.$2,500 c.$2,000 d.$0 e.None of these choices are correct.
Jayda, who is self-employed, maintains an office in her home that comprises 16% (370 square feet) of total floor space. Gross income for her business is $44,150, and her residence expenses are as follows: Real property taxes Interest on mortgage Operating expenses Depreciation (based on 16% business use) If required, round your final answer to the nearest dollar. a. What is Jayda's office in the home deduction based on the regular method? $ $4,860 8,100 4,050 6,395 b. What is Jayda's office in the home deduction based on the simplified method?
Kelvin owns and lives in a duplex. He rents the other unit for $720 per month. He incurs the following expenses during the current year for the entire property: Mortgage interest $ 7,350 Property taxes 1,880 Utilities 1,420 Fixed light fixture in rental unit 85 Fixed dishwasher in personal unit 220 Painted entire exterior 1,010 Insurance 1,700 Depreciation (entire structure) 6,200
Rita owns a sole proprietorship in which she works as a management consultant. She maintains an office in her home (500 square feet) where she meets with clients, prepares bills, and performs other work-related tasks. Her business expenses, other than home office expenses, total $5,720. The following home-related expenses have been allocated to her home office under the actual expense method for calculating home office expenses. Real property taxes $ 1,660 Interest on home mortgage 5,190 Operating expenses of home 830 Depreciation 1,636 Also, assume that, not counting the sole proprietorship, Rita's AGI is $61,200. Rita itemizes deductions, and her itemized deduction for non-home business taxes is less than $10,000 by more than the real property taxes allocated to business use of the home. Assume Rita's consulting business generated $15,300 in gross income. Note: Leave no answer blank. Enter zero if applicable. Required: What is Rita's home office deduction for the current…
Rita owns a sole proprietorship in which she works as a management consultant. She maintains an office in her home (500 square feet) where she meets with clients, prepares bills, and performs other work-related tasks. Her business expenses, other than home office expenses, total $6,000. The following home-related expenses have been allocated to her home office under the actual expense method for calculating home office expenses. Real property taxes $ 1,800 Interest on home mortgage 5,400 Operating expenses of home 900 Depreciation 1,720 Also, assume that, not counting the sole proprietorship, Rita's AGI is $64,000. Rita itemizes deductions, and her itemized deduction for non-home business taxes is less than $10,000 by more than the real property taxes allocated to business use of the home.Assume Rita’s consulting business generated $16,000 in gross income. a. What is Rita’s home office deduction for the current year?
R ita owns a sole proprietorship in which she works as a management consultant. She maintains an office in her home (500 square feet) where she meets with clients, prepares bills, and performs other work-related tasks. Her business expenses, other than home office expenses, total $5,800. The following home-related expenses have been allocated to her home office under the actual expense method for calculating home office expenses. Real property taxes $ 1,700 Interest on home mortgage 5,250 Operating expenses of home 850 Depreciation 1,660 Also, assume that, not counting the sole proprietorship, Rita’s AGI is $62,000. Rita itemizes deductions, and her itemized deduction for non-home business taxes is less than $10,000 by more than the real property taxes allocated to business use of the home. Assume Rita’s consulting business generated $15,500 in gross income. What is Rita’s home office deduction for the current year? What would Rita’s home office…
Rita owns a sole proprietorship in which she works as a management consultant. She maintains an office in her home (500 square feet) where she meets with clients, prepares bills, and performs other work-related tasks. Her business expenses, other than home office expenses, total $6,060. The following home-related expenses have been allocated to her home office under the actual expense method for calculating home office expenses. Real property taxes Interest on home mortgage Operating expenses of home $ 1,830 5,445 915 1,738 Depreciation Also, assume that, not counting the sole proprietorship, Rita's AGI is $64,600. Rita itemizes deductions, and her itemized deduction for non-home business taxes is less than $10,000 by more than the real property taxes allocated to business use of the home. Assume Rita's consulting business generated $16,150 in gross income. (Leave no answer blank. Enter zero if applicable.) d. Given the original facts, what types and amounts of expenses will she carry…