b. Timothy, a plumber employed by ACE Plumbing, spent $86 for small tools to be used on his job, but he was not reimbursed by ACE. Deductible for AGI Deductible from AGI Not deductible
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- In each of the following independent cases, indicate the amount (1) deductible for AGI, (2) deductible from AGI, and (3) deductible neither for nor from AGI before considering income limitations or the standard deduction. (Leave no answer blank. Enter zero if applicable.) a. Fran spent $182 for uniforms for use on her job. Her employer reimbursed her for $116 of this amount under an accountable plan (and did not report the reimbursement as wages). Deductible for AGI? Deductible from AGI? Not deductible? b. Timothy, a plumber employed by ACE Plumbing, spent $127 for small tools to be used on his job, but he was not reimbursed by ACE. Deductible for AGI? Deductible from AGI? Not deductible? c. Jake is a perfume salesperson. Because of his high pay, he receives no allowance or reimbursement from his employer for advertising expenses even though his position requires him to advertise frequently. During the year, he spent $4,250 on legitimate business advertisements. Deductible…Palmon is indebted to Pai Chan. Due to his inability to pay the debt, Palmon was asked to clean the piggery of Pai Chan for three months. Thereafter, Pai Chan gave Palmon P5,000 and condoned the debt amounting to P10,000. How much income should be declared by Palmon?Random Company requires their employees to travel for work using their own vehicles. The Company pays their employees a $0.75 per kilometer mileage rate allowance for the use of employee-owned cars. Ronny Ronald drove 7481 km this year and was provided an allowance at the company rate of $0.75 per kilometer. Ronny and the company are in Ontario. The non-deductible portion of the allowance provided to Ronny is
- Clem is married and is a skilled carpenter. Clem's wife, Wanda, works part time as a substitute grade school teacher. Determine the amount of Clem's expenses that are deductible for AGI this year (if any) under the following independent circumstances: (Leave no answer blank. Enter zero if applicable.) Problem 6-26 Part-a (Algo) a. Clem is self-employed, and this year he incurred $1,000 in expenses for tools and supplies related to his job. Because neither was covered by a qualified health plan, Wanda paid health insurance premiums of $5,140 to provide coverage for herself and Clem (not through an exchange). b. Clem and Wanda own a garage downtown that they rent to a local business for storage. This year they incurred expenses of $1,650 in utilities and $1,040 in depreciation. c. Clem paid…Clem is married and is a skilled carpenter. Clem's wife, Wanda, works part time as a substitute grade school teacher. Determine the amount of Clem's expenses that are deductible for AGI this year (if any) under the following independent circumstances: ( Enter zero if applicable.) Problem 6-26 Part-a (Algo) ***The previous expert did not answers all parts, seperately which include a, b, c, and d a. Clem is self-employed, and this year he incurred $1,000 in expenses for tools and supplies related to his job. Because neither was covered by a qualified health plan, Wanda paid health insurance premiums of $5,140 to provide coverage for herself and Clem (not through an exchange). What is the the deduction amount for AGI? b. Clem and Wanda own a garage downtown that they rent to a local business for storage. This year they incurred expenses of $1,650 in…Mr. Ben T. Lador, the Chief Accountant, availed of the car plan of Kiowa Company. Under the plan, he will shoulder only half of the cost of the car, with the company shouldering the other half. He paid P450,000 for the car. The car was registered in the name of Mr. Lador. Questions: 1. How much is the fringe benefit tax due? 2. How much is the deductible expense of Kiowa Company?
- Trip Garage, Inc. (459 Ellis Avenue, Harrisburg, PA 17111), is an accrual basis taxpayer that repairs automobiles. In late December 2019, the company repaired Samuel Mosleys car and charged him 1,000. Samuel did not think the problem had been fixed and refused to pay; thus, Trip refused to release the automobile. In early January 2020, Trip made a few adjustments and convinced Samuel that the automobile was working properly. At that time, Samuel agreed to pay only 900 because he did not have the use of the car for a week. Trip said fine, accepted the 900, and released the automobile to Samuel. An IRS agent thinks Trip, as an accrual basis taxpayer, should report 1,000 of income in 2019, when the work was done, and then deduct a 100 loss in 2020. Prepare a memo to Susan Apple, the treasurer of Trip, with the recommended treatment for the disputed income.George owed Keith $800 on a personal loan. Neither the amount of the debt nor George’s liability to pay the $800 was disputed. Keith had also rendered services as a carpenter to George without any agreement as to the price to be paid. When the work was completed, an honest and reasonable difference of opinion developed between George and Keith with respect to the value of Keith’s services. Upon receiving from Keith a bill of $600 for the carpentry services, George mailed in a properly stamped and addressed envelope his check for $800 to Keith. In an accompanying letter, George stated that the enclosed check was in full settlement of both claims. Keith indorsed and cashed the check. Thereafter, Keith unsuccessfully sought to collect from George an alleged unpaid balance of $600. May Keith recover the $600 from George?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?
- Old Granddad can no longer safely navigate the stairs in his home. So he pays $60,000 to have an elevator installed. Explain how you would treat this ex-penditure within the medical expense deduction rules. In 4-5 sentences, give a hypothetical example of how a deductible amount would be calculated. Alterna-tively, if you believe that no deductible would be available, explain why in 4-5 sentences.Clem is married and is a skilled carpenter. Clem's wife, Wanda, works part time as a substitute grade school teacher. Determine the amount of Clem's expenses that are deductible for AGI this year (if any) under the following independent circumstances: Note: Leave no answer blank. Enter zero if applicable. a. Clem is self-employed, and this year he incurred $525 in expenses for tools and supplies related to his job. Because neither was covered by a qualified health plan, Clem paid health insurance premiums of $3,600 to provide coverage for himself and Wanda (not through an exchange). Deductible amount for AGI $ 525 งFor or From AGI Deductions. Roberta is an accountant employed by a local firm. Duringthe year, Roberta incurs the following unreimbursed expenses:Travel to client locations $750Subscriptions to professional journals 215Taking potential clients to lunch 400Photocopying 60a. Identify which of these expenses are deductible and the amount that is deductible.Indicate whether they are deductible for or from AGI.b. Would the answers to Part a change if the accounting firm reimburses Roberta forthese expenses?c. Assume all of the same facts as in Part a, except that Roberta is self-employed. Identifywhich of the expenses are deductible, and indicate whether they are deductions for or from AGI.
