Mr. and Mrs. Lukert own a sole proprietorship and have no other source of income. This year, they paid $11,674 Massachusetts income tax, all of which is attributable to their business proﬁt. Can they deduct their state income tax as a business expense on Schedule C, or must they report it as an itemized deduction on Schedule A?
Answer to relevant QuestionsBetsy and Larry Lorch own and reside in an apartment in midtown Manhattan. They left the city to avoid the uproar surrounding New Year’s Eve and spent a long holiday with Larry’s parents in upstate New York. They sublet ...Blake and Valerie Meyer (both age 30) are married with one dependent child (age 5). On the basis of the following information, compute the Meyers’ federal income tax (including any AMT) on their joint return. • Blake’s ...Mr. and Mrs. BL ﬁled a joint tax return reporting $24,000 AGI. During the year, Mr. BL was extremely ill and was hospitalized for four months. Mrs. BL, desperate for funds to pay her husband’s medical bills, took a night ...The revenue agent who audited Ms. Hsui’s Form 1040 discovered that she had claimed a $15,250 deduction that wasn’t allowed by the tax law. The improper deduction reduced Ms. Hsui’s tax by $5,033. Her total tax ...Ms. Cross didn’t request an extension of time to ﬁle last year’s income tax return and didn’t mail the completed return to the IRS until August 8. She enclosed a check for $2,380, the correct balance of tax due with ...
Post your question