ACC AGI Calculation

Get a 10% discount on an order above
Use the following coupon code :

Order a Similar Paper Order a Different Paper

39. David is a college professor who does some consulting work on the side. He uses 25% of his home exclusively for the consulting practice. He is single and 63 years old. His AGI (without consideration of consulting income) is $45,000. Other informationfollows:

Income from consulting business             $4,000
Consulting expenses other than home office             1,500
Total costs relating to home:  
Interest and taxes             6,500
Utilities             1,500
Maintenance and repairs             450
Depreciation (business part only)             1,500


Calculate David’s AGI:

Save your time - order a paper!

Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines

Order Paper Now

51.  Jose purchased a vehicle for business and personal use. In 2013 he used the vehicle 18,000 miles (80%) for business and calculated his vehicle expenses using the standard mileage rate (mileage was incurred ratably throughout the year). He paid $1,400 in interest and $150 in property taxes on the car. Calculate the total business deduction related to the car:


53. Derrick owns a farm in eastern North Carolina. A hurricane hit the area and destroyed a farm building and some farm equipment and damaged a barn.


Item Adjusted basis FMV before damage FMV after damage Insurance proceeds
Building $85,000 $115,000 $0 $55,000
Equipment 68,000 49,000 0 15,000
Barn 95,000 145,000 95,000 35,000


Due to the extensive damage throughout the area, the president of the United States declared all areas affected by the hurricane as a disaster area. Derrick, who files a joint return withhis wife, had $45,000 of taxable income last year. Their taxable income for thecurrent year is $150,000, excluding the loss from the hurricane. Calculate the amount of the loss deductible by Derrick and his wife and the years in which they should deduct the loss.

(Hint: Chapter 5 providesinformation concerning nationally declared disaster areas.)

55.  Eric, who is single, participates in an activity that is appropriately classified as a hobby. The activity produces the following revenue and expenses:



Revenue $12,000
Property taxes 2,000
Materials and supplies 4,000
Utilities 1,500
Advertising 1,900
Insurance 775
Depreciation 5,000

Without regard to thisactivity, Eric’s AGI is $55,000. Determine how much income Eric must report, the amount of the expenses he is permitted to deduct, and his AGI:

56. In 2013 Landon has self-employment earnings of $195,000. Compute Landon’s self-employment tax liability and the allowable income tax deduction of the self-employment tax paid.

SE tax:_______________________

SE deduction: __________________________

Looking for a similar assignment? Get help from our qualified experts!

Our specialized Assignment Writers can help you with your custom paper today. 100% written from scratch

Order a Similar Paper Order a Different Paper